Earth Corp. (4985) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sumitomo Pharma Co., Ltd.

Towa Pharmaceutical Co., Ltd.

KYORIN Pharmaceutical Co., Ltd.

Zeria Pharmaceutical Co., Ltd.

Torii Pharmaceutical Co., Ltd.

Earth Corp.

Mochida Pharmaceutical Co., Ltd.

JCR Pharmaceuticals Co., Ltd.

SAWAI GROUP HOLDINGS Co., Ltd.

Nxera Pharma Co., Ltd.

Kaken Pharmaceutical Co., Ltd.

Why is Earth Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of -2.11% over the last 5 years

Negative results in Dec 25

INTEREST(Q) At JPY 21 MM has Grown at 31.25%
OPERATING PROFIT(Q) Lowest at JPY -3,924 MM
OPERATING PROFIT MARGIN(Q) Lowest at -10.83 %

Below par performance in long term as well as near term

Along with generating -8.64% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Earth Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Earth Corp.

-8.64%

0.02

18.84%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.11%

EBIT Growth (5y)

0.35%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

2.12

Tax Ratio

32.59%

Dividend Payout Ratio

75.82%

Pledged Shares

Institutional Holding

ROCE (avg)

14.30%

ROE (avg)

10.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.56

EV to EBIT

14.20

EV to EBITDA

8.91

EV to Capital Employed

1.56

EV to Sales

0.64

PEG Ratio

0.37

Dividend Yield

ROCE (Latest)

10.96%

ROE (Latest)

8.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

ROCE(HY)

Highest at 7.29%

RAW MATERIAL COST(Y)

Fallen by 1.93% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 7 times

-15What is not working for the Company

INTEREST(Q)

At JPY 21 MM has Grown at 31.25%

OPERATING PROFIT(Q)

Lowest at JPY -3,924 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -10.83 %

PRE-TAX PROFIT(Q)

Lowest at JPY -4,811 MM

NET PROFIT(Q)

Lowest at JPY -3,109 MM

EPS(Q)

Lowest at JPY -173.65

Here's what is working for Earth Corp.

Debtors Turnover Ratio

Highest at 7 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.93% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 1,304 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Earth Corp.

Interest

At JPY 21 MM has Grown at 31.25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -3,924 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -10.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -4,811 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -3,109 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -173.65

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)