Eole, Inc. (2334) 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

GMO AD Partners, Inc.

CyberBuzz, Inc.

Ray Corp.

Eole, Inc.

Interspace Co., Ltd.

HYOJITO Co., Ltd.

GMO Media, Inc.

Gendai Agency, Inc.

Allied Architects, Inc.

Scigineer, Inc.

CDG Co., Ltd.

Why is Eole, Inc. ?

Poor Management Efficiency with a low ROE of 2.55%

The company has been able to generate a Return on Equity (avg) of 2.55% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -50.88

Poor long term growth as Operating profit has grown by an annual rate 22.63% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -50.88
The company has been able to generate a Return on Equity (avg) of 2.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 22.63% of over the last 5 years

With a growth in Net Sales of 536.45%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 4 consecutive quarters
NET PROFIT(HY) At JPY 137.82 MM has Grown at 73.29%
NET SALES(Q) Highest at JPY 6,500.79 MM
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Eole, Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Eole, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Eole, Inc.

-87.6%

-0.20

138.48%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

42.65%

EBIT Growth (5y)

22.63%

EBIT to Interest (avg)

28.41

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

5.33

Tax Ratio

0.82%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.03%

ROE (avg)

2.55%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

112

Industry P/E

Price to Book Value

8.17

EV to EBIT

117.68

EV to EBITDA

112.11

EV to Capital Employed

17.77

EV to Sales

2.54

PEG Ratio

0.60

Dividend Yield

ROCE (Latest)

15.10%

ROE (Latest)

7.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

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

29What is working for the Company

NET PROFIT(HY)

At JPY 137.82 MM has Grown at 73.29%

NET SALES(Q)

Highest at JPY 6,500.79 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -5.3% (YoY

CASH AND EQV(HY)

Highest at JPY 3,161.65 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 28.55 times

OPERATING PROFIT(Q)

Highest at JPY 90.3 MM

-3What is not working for the Company

INTEREST(9M)

At JPY 1.38 MM has Grown at 8.26%

EPS(Q)

Lowest at JPY -12.47

Here's what is working for Eole, Inc.

Net Sales

At JPY 6,500.79 MM has Grown at 536.45%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 6,500.79 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

At JPY 137.82 MM has Grown at 73.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 90.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Cash and Eqv

Highest at JPY 3,161.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 28.55 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.3% (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 13.43 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 13.43 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 Eole, Inc.

Interest

At JPY 1.38 MM has Grown at 8.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -12.47

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)