Econach Holdings Co., Ltd. (3521) 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

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Econach Holdings Co., Ltd.

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Gokurakuyu Holdings Co., Ltd.

Why is Econach Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROE of 1.38%

The company has been able to generate a Return on Equity (avg) of 1.38% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.28% and Operating profit at 1.33% over the last 5 years

The company has declared Positive results for the last 14 consecutive quarters

NET SALES(Q) Highest at JPY 768.08 MM

With ROE of 3.89%, it has a very attractive valuation with a 0.81 Price to Book Value

Over the past year, while the stock has generated a return of 6.13%, its profits have risen by 99.2% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 6.13% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Econach Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

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

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

Is Econach Holdings Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Econach Holdings Co., Ltd.

-100.0%

1.25

28.05%

Japan Nikkei 225

38.94%

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)

3.28%

EBIT Growth (5y)

1.33%

EBIT to Interest (avg)

8.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.35

Tax Ratio

43.65%

Dividend Payout Ratio

69.05%

Pledged Shares

Institutional Holding

ROCE (avg)

2.60%

ROE (avg)

1.38%

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

0.81

EV to EBIT

9.06

EV to EBITDA

4.78

EV to Capital Employed

0.77

EV to Sales

1.56

PEG Ratio

0.21

Dividend Yield

ROCE (Latest)

8.49%

ROE (Latest)

3.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

11What is working for the Company

NET SALES(Q)

Highest at JPY 768.08 MM

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 7,290.73

RAW MATERIAL COST(Y)

Grown by 17.74% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 85.58 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.12 times

OPERATING PROFIT(Q)

Lowest at JPY 109.29 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.23 %

Here's what is working for Econach Holdings Co., Ltd.

Net Sales

At JPY 768.08 MM has Grown at 41.47%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 768.08 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Here's what is not working for Econach Holdings Co., Ltd.

Interest Coverage Ratio

Lowest at 7,290.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 109.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 14.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 85.58 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 15.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 17.74% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales