ECOMIC CO., LTD. (3802) 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

Forval RealStraight Inc.

Delivery Consulting, Inc.

JTEC Corp.

ECOMIC CO., LTD.

CINC Corp.

Palma Co. Ltd.

Japan Reliance Service Corp.

Cacco, Inc.

DesignOne Japan, Inc.

BCC Co., Ltd.

ALiNK Internet, Inc.

Why is ECOMIC CO., LTD. ?

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

With a growth in Net Sales of 11.7%, the company declared Very Positive results in Dec 25

NET PROFIT(HY) Higher at JPY 109.31 MM
INVENTORY TURNOVER RATIO(HY) Highest at 1,422.3 times
CASH AND EQV(HY) Highest at JPY 1,963.48 MM

With ROE of 3.38%, it has a expensive valuation with a 1.24 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 2.80%, its profits have risen by 343.6% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 2.80% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ECOMIC CO., LTD. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is ECOMIC CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ECOMIC CO., LTD.

2.59%

0.17

26.59%

Japan Nikkei 225

81.96%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.79%

EBIT Growth (5y)

-11.17%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.75

Sales to Capital Employed (avg)

1.26

Tax Ratio

40.17%

Dividend Payout Ratio

141.18%

Pledged Shares

Institutional Holding

ROCE (avg)

40.73%

ROE (avg)

8.49%

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

1.24

EV to EBIT

19.21

EV to EBITDA

7.33

EV to Capital Employed

1.43

EV to Sales

0.65

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

7.44%

ROE (Latest)

3.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 73.45 MM has Grown at 917.74%

NET PROFIT(Q)

At JPY 52.98 MM has Grown at 807.01%

INVENTORY TURNOVER RATIO(HY)

Highest at 1,805.84 times

RAW MATERIAL COST(Y)

Fallen by -54.77% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -78.26 %

OPERATING PROFIT MARGIN(Q)

Highest at 26.27 %

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for ECOMIC CO., LTD.

Pre-Tax Profit

At JPY 73.45 MM has Grown at 917.74%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 52.98 MM has Grown at 807.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 1,805.84 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

Operating Profit Margin

Highest at 26.27 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at -78.26 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -54.77% (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