Why is Econach Holdings Co., Ltd. ?
1
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
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 8.18
- Poor long term growth as Net Sales has grown by an annual rate of 25.05% and Operating profit at 38.70% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 8.18
- The company has been able to generate a Return on Equity (avg) of 1.38% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 25.05% and Operating profit at 38.70% over the last 5 years
4
With a growth in Net Sales of 45.59%, the company declared Very Positive results in Mar 26
- NET SALES(Q) At JPY 695.17 MM has Grown at 45.59%
- INTEREST COVERAGE RATIO(Q) Highest at 10,901.1
- DIVIDEND PAYOUT RATIO(Y) Highest at 389.89%
5
With ROE of 3.53%, it has a very attractive valuation with a 0.78 Price to Book Value
- Over the past year, while the stock has generated a return of -7.23%, its profits have fallen by -18.2%
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, Low Return
Absolute
Risk Adjusted
Volatility
Econach Holdings Co., Ltd.
-7.23%
1.01
20.11%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality key factors
Factor
Value
Sales Growth (5y)
25.05%
EBIT Growth (5y)
38.70%
EBIT to Interest (avg)
20.75
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
0.38
Tax Ratio
43.80%
Dividend Payout Ratio
82.53%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.11%
ROE (avg)
1.38%
Valuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
0.78
EV to EBIT
9.18
EV to EBITDA
5.38
EV to Capital Employed
0.74
EV to Sales
1.24
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.03%
ROE (Latest)
3.53%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
14What is working for the Company
NET SALES(Q)
At JPY 695.17 MM has Grown at 45.59%
INTEREST COVERAGE RATIO(Q)
Highest at 10,901.1
DIVIDEND PAYOUT RATIO(Y)
Highest at 389.89%
-3What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 25.07% (YoY
Here's what is working for Econach Holdings Co., Ltd.
Net Sales
At JPY 695.17 MM has Grown at 45.59%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Interest Coverage Ratio
Highest at 10,901.1
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend Payout Ratio
Highest at 389.89%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
At JPY 69.75 MM has Grown at inf%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for Econach Holdings Co., Ltd.
Raw Material Cost
Grown by 25.07% (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






