EBARA Foods Industry, Inc. (2819) 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

Key Coffee, Inc.

Gift Holdings, Inc.

Bourbon Corp. (Japan)

KOIKE-YA, Inc.

Taiyo Kagaku Co., Ltd.

EBARA Foods Industry, Inc.

Nitto Fuji Flour Milling Co., Ltd.

Takasago International Corp.

WARABEYA NICHIYO HOLDINGS Co., Ltd.

Fujicco Co., Ltd.

Nagatanien Holdings Co., Ltd.

Why is EBARA Foods Industry, Inc. ?

Weak Long Term Fundamental Strength with a -0.77% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of -0.77% over the last 5 years

With a growth in Net Sales of 7%, the company declared Very Positive results in Mar 26

NET PROFIT(HY) At JPY 1,038 MM has Grown at 88.38%
DEBT-EQUITY RATIO (HY) Lowest at -46.36 %
DEBTORS TURNOVER RATIO(HY) Highest at 6.08 times

With ROE of 5.38%, it has a expensive valuation with a 0.64 Price to Book Value

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 -3.44%, its profits have risen by 13.4% ; the PEG ratio of the company is 0.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.44% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to EBARA Foods Industry, Inc. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is EBARA Foods Industry, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

EBARA Foods Industry, Inc.

-3.44%

-0.98

14.09%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.77%

EBIT Growth (5y)

-7.53%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

1.36

Tax Ratio

33.61%

Dividend Payout Ratio

25.73%

Pledged Shares

Institutional Holding

ROCE (avg)

17.50%

ROE (avg)

7.10%

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

0.64

EV to EBIT

5.03

EV to EBITDA

2.91

EV to Capital Employed

0.48

EV to Sales

0.24

PEG Ratio

0.59

Dividend Yield

ROCE (Latest)

9.54%

ROE (Latest)

5.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

7What is working for the Company

NET PROFIT(HY)

At JPY 1,038 MM has Grown at 88.38%

DEBT-EQUITY RATIO (HY)

Lowest at -46.36 %

DEBTORS TURNOVER RATIO(HY)

Highest at 6.08 times

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.14 times

OPERATING PROFIT(Q)

Lowest at JPY -166 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.59 %

Here's what is working for EBARA Foods Industry, Inc.

Net Profit

At JPY 1,038 MM has Grown at 88.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -46.36 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 6.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for EBARA Foods Industry, Inc.

Operating Profit

Lowest at JPY -166 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -1.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 10.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio