Why is Encho Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.99%
- Poor long term growth as Net Sales has grown by an annual rate of -2.02% and Operating profit at -15.28% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
The company has declared Negative results for the last 3 consecutive quarters
- NET PROFIT(HY) At JPY -178.25 MM has Grown at -290.72%
- INTEREST(HY) At JPY 110 MM has Grown at 52.78%
- PRE-TAX PROFIT(Q) At JPY 1 MM has Fallen at -98.69%
3
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 38.04%, its profits have risen by 959.9% ; the PEG ratio of the company is 0
- At the current price, the company has a high dividend yield of 0
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Encho Co., Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Encho Co., Ltd.
38.04%
1.17
28.27%
Japan Nikkei 225
28.54%
0.82
24.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.02%
EBIT Growth (5y)
-15.28%
EBIT to Interest (avg)
2.63
Debt to EBITDA (avg)
14.44
Net Debt to Equity (avg)
1.64
Sales to Capital Employed (avg)
1.37
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.99%
ROE (avg)
3.08%
Valuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
Price to Book Value
0.82
EV to EBIT
185.63
EV to EBITDA
28.97
EV to Capital Employed
0.93
EV to Sales
0.64
PEG Ratio
0.04
Dividend Yield
0.05%
ROCE (Latest)
0.50%
ROE (Latest)
2.28%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
3What is working for the Company
ROCE(HY)
Highest at -1.84%
RAW MATERIAL COST(Y)
Fallen by -1.15% (YoY
-17What is not working for the Company
NET PROFIT(HY)
At JPY -178.25 MM has Grown at -290.72%
INTEREST(HY)
At JPY 110 MM has Grown at 52.78%
PRE-TAX PROFIT(Q)
At JPY 1 MM has Fallen at -98.69%
DEBT-EQUITY RATIO
(HY)
Highest at 159.55 %
EPS(Q)
Lowest at JPY -12.72
Here's what is working for Encho Co., Ltd.
Raw Material Cost
Fallen by -1.15% (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
Here's what is not working for Encho Co., Ltd.
Net Profit
At JPY -178.25 MM has Grown at -290.72%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 110 MM has Grown at 52.78%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 1 MM has Fallen at -98.69%
over average net sales of the previous four periods of JPY 76.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
EPS
Lowest at JPY -12.72
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Highest at 159.55 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






