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EPCO Co., Ltd.

  • Market Cap: Micro Cap
  • Industry: Furniture, Home Furnishing
  • ISIN: JP3167250004
  • TKS: 2311
JPY
795.00
7 (0.89%)

Sep 24

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
First-corporation Inc.
e'grand Co., Ltd.
Grandy House Corp.
EPCO Co., Ltd.
Agratio urban design, Inc.
NIHON HOUSE HOLDINGS Co., Ltd.
The Global Ltd.
AVANTIA Co., Ltd.
Japan Living Warranty, Inc.
Sanyo Homes Corp.
REVOLUTION CO., LTD. (Yamaguchi)

Why is EPCO Co., Ltd. ?

1
Weak Long Term Fundamental Strength with a 1.18% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Operating profit has grown by an annual rate 1.18% of over the last 5 years
3
Flat results in Jun 26
  • PRE-TAX PROFIT(Q) At JPY 113.28 MM has Fallen at -46.66%
  • DEBTORS TURNOVER RATIO(HY) Lowest at 7.86 times
  • NET PROFIT(Q) Lowest at JPY 73.53 MM
4
With ROE of 10.25%, it has a very attractive valuation with a 1.58 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 -8.80%, its profits have risen by 30.7% ; the PEG ratio of the company is 0.5
5
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -8.80% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to EPCO Co., Ltd. should be less than 10%
  2. 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.
-8.83%
-0.23
19.22%
Japan Nikkei 225
43.58%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
7.05%
EBIT Growth (5y)
1.18%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.27
Sales to Capital Employed (avg)
1.16
Tax Ratio
21.10%
Dividend Payout Ratio
73.74%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.30%
ROE (avg)
10.71%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.58
EV to EBIT
12.38
EV to EBITDA
9.70
EV to Capital Employed
2.08
EV to Sales
0.81
PEG Ratio
0.50
Dividend Yield
NA
ROCE (Latest)
16.83%
ROE (Latest)
10.25%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company
INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -4.31% (YoY

CASH AND EQV(HY)

Highest at JPY 4,849.81 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 34.2 times

DIVIDEND PER SHARE(HY)

Highest at JPY 7.86

-9What is not working for the Company
PRE-TAX PROFIT(Q)

At JPY 113.28 MM has Fallen at -46.66%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.86 times

NET PROFIT(Q)

Lowest at JPY 73.53 MM

EPS(Q)

Lowest at JPY 8.21

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

Cash and Eqv
Highest at JPY 4,849.81 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio
Highest at 34.2 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share
Highest at JPY 7.86
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost
Fallen by -4.31% (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.

Pre-Tax Profit
At JPY 113.28 MM has Fallen at -46.66%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit
At JPY 73.53 MM has Fallen at -50.42%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Profit
Lowest at JPY 73.53 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS
Lowest at JPY 8.21
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio
Lowest at 7.86 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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