ES-CON JAPAN Ltd. (8892) 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

Relo Group, Inc.

Tosei Corp.

Samty Co., Ltd.

Leopalace21 Corp.

Starts Corp., Inc.

ES-CON JAPAN Ltd.

NIPPON KANZAI Holdings Co., Ltd.

Heiwa Real Estate Co., Ltd.

Ichigo, Inc.

AEON Mall Co., Ltd.

Raysum Co., Ltd.

Why is ES-CON JAPAN Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 12.08%

Healthy long term growth as Net Sales has grown by an annual rate of 8.00% and Operating profit at 11.80%
INTEREST COVERAGE RATIO(Q) Lowest at 81.49
NET SALES(Q) Lowest at JPY 10,027 MM
INTEREST(Q) Highest at JPY 1,653 MM

With ROE of 14.22%, it has a very attractive valuation with a 1.37 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 7.50%, its profits have risen by 47% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 7.50% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ES-CON JAPAN Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is ES-CON JAPAN Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ES-CON JAPAN Ltd.

7.5%

0.12

19.71%

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)

8.00%

EBIT Growth (5y)

11.80%

EBIT to Interest (avg)

6.82

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

32.33%

Dividend Payout Ratio

37.70%

Pledged Shares

Institutional Holding

ROCE (avg)

65.50%

ROE (avg)

12.08%

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

1.37

EV to EBIT

3.10

EV to EBITDA

2.75

EV to Capital Employed

1.81

EV to Sales

0.58

PEG Ratio

0.21

Dividend Yield

ROCE (Latest)

58.30%

ROE (Latest)

14.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

6What is working for the Company

NET SALES(HY)

At JPY 84,132 MM has Grown at 65.82%

RAW MATERIAL COST(Y)

Fallen by -19.05% (YoY

CASH AND EQV(HY)

Highest at JPY 101,947 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 97.17 times

-24What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 81.49

NET SALES(Q)

Lowest at JPY 10,027 MM

INTEREST(Q)

Highest at JPY 1,653 MM

PRE-TAX PROFIT(Q)

Lowest at JPY -854 MM

NET PROFIT(Q)

Lowest at JPY -720 MM

EPS(Q)

Lowest at JPY -7.51

Here's what is working for ES-CON JAPAN Ltd.

Cash and Eqv

Highest at JPY 101,947 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 97.17 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 -19.05% (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 ES-CON JAPAN Ltd.

Net Sales

At JPY 10,027 MM has Fallen at -42.97%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -854 MM has Fallen at -183.07%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -720 MM has Fallen at -197.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 81.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 10,027 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 1,653 MM

in the last five periods and Increased by 6.71% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY -854 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -720 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -7.51

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)