Estelle Holdings Co., Ltd. (7872) 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

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Estelle Holdings Co., Ltd.

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The Sailor Pen Co., Ltd.

Why is Estelle Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.80%

The company has been able to generate a Return on Capital Employed (avg) of 1.80% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.29 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.29 times
The company has been able to generate a Return on Equity (avg) of 2.39% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.57% and Operating profit at -32.72% over the last 5 years

Negative results in Dec 25

NET PROFIT(Q) At JPY 20.84 MM has Fallen at -80.71%
RAW MATERIAL COST(Y) Grown by 6.64% (YoY)
CASH AND EQV(HY) Lowest at JPY 9,031 MM

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 1.46%, its profits have risen by 105.2% ; the PEG ratio of the company is 1.7

Real-Time Research Report

Verdict Report

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 Gems, Jewellery And Watches)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Estelle Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Estelle Holdings Co., Ltd.

1.46%

-0.24

13.36%

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)

-0.57%

EBIT Growth (5y)

-32.72%

EBIT to Interest (avg)

7.40

Debt to EBITDA (avg)

5.29

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

1.37

Tax Ratio

70.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.80%

ROE (avg)

2.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

179

Industry P/E

Price to Book Value

0.55

EV to EBIT

58.26

EV to EBITDA

19.28

EV to Capital Employed

0.67

EV to Sales

0.35

PEG Ratio

1.71

Dividend Yield

ROCE (Latest)

1.15%

ROE (Latest)

0.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

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

6What is working for the Company

NET PROFIT(HY)

Higher at JPY -37.33 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 0.89 times

NET SALES(Q)

Highest at JPY 8,663 MM

PRE-TAX PROFIT(Q)

At JPY 203 MM has Grown at 107.14%

-23What is not working for the Company

NET PROFIT(Q)

At JPY 20.84 MM has Fallen at -80.71%

RAW MATERIAL COST(Y)

Grown by 6.64% (YoY

CASH AND EQV(HY)

Lowest at JPY 9,031 MM

DEBT-EQUITY RATIO (HY)

Highest at 49.08 %

INTEREST(Q)

Highest at JPY 25 MM

Here's what is working for Estelle Holdings Co., Ltd.

Inventory Turnover Ratio

Highest at 0.89 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 8,663 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 203 MM has Grown at 107.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Here's what is not working for Estelle Holdings Co., Ltd.

Net Profit

At JPY 20.84 MM has Fallen at -80.71%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 25 MM

in the last five periods and Increased by 8.7% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 9,031 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 49.08 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 6.64% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales