Eco's Co., Ltd. (7520) 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

Axial Retailing, Inc.

JM Holdings Co., Ltd.

Saint Marc Holdings Co., Ltd.

Mammy Mart Corp.

Uoriki Co., Ltd.

Eco's Co., Ltd.

RETAIL PARTNERS CO., LTD.

Okuwa Co., Ltd.

Kakiyasu Honten Co., Ltd.

Ministop Co., Ltd.

Inageya Co., Ltd.

Why is Eco's Co., Ltd. ?

High Management Efficiency with a high ROE of 18.41%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 0.89% and Operating profit at 0.94% over the last 5 years

Flat results in Feb 26

INTEREST(HY) At JPY 46 MM has Grown at 31.43%
ROCE(HY) Lowest at 9.43%
DEBT-EQUITY RATIO (HY) Highest at -0.76 %

With ROE of 14.35%, it has a very attractive valuation with a 1.08 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 -4.70%, its profits have risen by 5.1% ; the PEG ratio of the company is 1.5

Below par performance in long term as well as near term

Along with generating -4.70% 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 hold?

Overall Portfolio exposure to Eco's Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Eco's Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Eco's Co., Ltd.

-4.7%

-0.04

22.61%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.89%

EBIT Growth (5y)

0.94%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

3.44

Tax Ratio

31.28%

Dividend Payout Ratio

29.72%

Pledged Shares

Institutional Holding

ROCE (avg)

26.91%

ROE (avg)

18.41%

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

1.08

EV to EBIT

5.33

EV to EBITDA

3.87

EV to Capital Employed

1.08

EV to Sales

0.22

PEG Ratio

1.47

Dividend Yield

ROCE (Latest)

20.26%

ROE (Latest)

14.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 23.36

RAW MATERIAL COST(Y)

Fallen by -0.27% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 6.7 %

NET PROFIT(Q)

Highest at JPY 1,718 MM

-14What is not working for the Company

INTEREST(HY)

At JPY 46 MM has Grown at 31.43%

ROCE(HY)

Lowest at 9.43%

DEBT-EQUITY RATIO (HY)

Highest at -0.76 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 22.81 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 23.36 times

EPS(Q)

Lowest at JPY -56.61

Here's what is working for Eco's Co., Ltd.

Dividend per share

Highest at JPY 23.36 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Operating Profit Margin

Highest at 6.7 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at JPY 1,718 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 1,718 MM has Grown at 62.03%

over average net sales of the previous four periods of JPY 1,060.33 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -0.27% (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 610 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 Eco's Co., Ltd.

Interest

At JPY 46 MM has Grown at 31.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -56.61

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -0.76 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 22.81 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 23.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio