EPCO Co., Ltd. (2311) 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

e'grand Co., Ltd.

AVANTIA Co., Ltd.

EPCO Co., Ltd.

The Global Ltd.

Japan Living Warranty, Inc.

Agratio urban design, Inc.

Grandy House Corp.

NIHON HOUSE HOLDINGS Co., Ltd.

REVOLUTION CO., LTD. (Yamaguchi)

First-corporation Inc.

Sanyo Homes Corp.

Why is EPCO Co., Ltd. ?

High Management Efficiency with a high ROE of 10.71%

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

Poor long term growth as Operating profit has grown by an annual rate -11.60% of over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 2.27 MM has Grown at 50.13%
PRE-TAX PROFIT(Q) Fallen at -40.02%
NET PROFIT(Q) Fallen at -46.79%

With ROE of 8.18%, it has a very attractive valuation with a 1.54 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 13.23%, its profits have fallen by -38.7%

Underperformed the market in the last 1 year

The stock has generated a return of 13.23% 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 EPCO Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is EPCO Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

EPCO Co., Ltd.

13.23%

-0.14

23.70%

Japan Nikkei 225

36.73%

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)

6.58%

EBIT Growth (5y)

-11.60%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

1.12

Tax Ratio

27.12%

Dividend Payout Ratio

87.49%

Pledged Shares

Institutional Holding

ROCE (avg)

9.80%

ROE (avg)

10.71%

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

1.54

EV to EBIT

17.44

EV to EBITDA

12.67

EV to Capital Employed

1.74

EV to Sales

0.97

PEG Ratio

Dividend Yield

ROCE (Latest)

9.99%

ROE (Latest)

8.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

8What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 145.55%

RAW MATERIAL COST(Y)

Fallen by 0.64% (YoY

NET PROFIT(9M)

Higher at JPY 372.08 MM

CASH AND EQV(HY)

Highest at JPY 5,496.36 MM

DEBT-EQUITY RATIO (HY)

Lowest at -49.67 %

INVENTORY TURNOVER RATIO(HY)

Highest at 32.91 times

DEBTORS TURNOVER RATIO(HY)

Highest at 9.15 times

DIVIDEND PER SHARE(HY)

Highest at JPY 9.15

-10What is not working for the Company

INTEREST(HY)

At JPY 2.27 MM has Grown at 50.13%

PRE-TAX PROFIT(Q)

Fallen at -40.02%

NET PROFIT(Q)

Fallen at -46.79%

Here's what is working for EPCO Co., Ltd.

Cash and Eqv

Highest at JPY 5,496.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -49.67 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 32.91 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 9.15 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 9.15

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 145.55%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.64% (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 EPCO Co., Ltd.

Interest

At JPY 2.27 MM has Grown at 50.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -40.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -46.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)