EARTH INFINITY CO. LTD. (7692) 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

EARTH INFINITY CO. LTD.

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EDP Corp.

Why is EARTH INFINITY CO. LTD. ?

High Management Efficiency with a high ROCE of 16.63%

Healthy long term growth as Net Sales has grown by an annual rate of 14.72%

With a growth in Net Profit of 78.66%, the company declared Very Positive results in Oct 25

The company has declared positive results for the last 3 consecutive quarters
NET PROFIT(HY) At JPY 269.69 MM has Grown at 129.56%
NET SALES(HY) At JPY 3,370.54 MM has Grown at 17.94%
ROCE(HY) Highest at 63.15%

With ROCE of 39.35%, it has a expensive valuation with a 9.48 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.01%, its profits have risen by 614.4% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to EARTH INFINITY CO. LTD. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is EARTH INFINITY CO. LTD. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

EARTH INFINITY CO. LTD.

-11.01%

-0.25

48.13%

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)

14.72%

EBIT Growth (5y)

102.01%

EBIT to Interest (avg)

36.37

Debt to EBITDA (avg)

0.76

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

2.88

Tax Ratio

35.13%

Dividend Payout Ratio

50.16%

Pledged Shares

Institutional Holding

ROCE (avg)

31.37%

ROE (avg)

11.90%

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

14.41

EV to EBIT

24.08

EV to EBITDA

22.63

EV to Capital Employed

9.48

EV to Sales

2.28

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

39.35%

ROE (Latest)

36.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bearish

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

17What is working for the Company

NET PROFIT(HY)

At JPY 269.69 MM has Grown at 129.56%

NET SALES(HY)

At JPY 3,370.54 MM has Grown at 17.94%

ROCE(HY)

Highest at 63.15%

INVENTORY TURNOVER RATIO(HY)

Highest at 1,799.34 times

RAW MATERIAL COST(Y)

Fallen by -32.15% (YoY

-11What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.47 times

INTEREST(Q)

At JPY 2.63 MM has Grown at 16.76%

Here's what is working for EARTH INFINITY CO. LTD.

Net Profit

At JPY 269.69 MM has Grown at 129.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 3,370.54 MM has Grown at 17.94%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 1,799.34 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -32.15% (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

Here's what is not working for EARTH INFINITY CO. LTD.

Interest

At JPY 2.63 MM has Grown at 16.76%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 5.47 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio