Why is FaithNetwork Co., Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 20.09%
- Healthy long term growth as Net Sales has grown by an annual rate of 20.70% and Operating profit at 37.92%
2
Positive results in Jun 26
- DEBTORS TURNOVER RATIO(HY) Highest at 115.52 times
- NET SALES(Q) At JPY 4,735 MM has Grown at 60.25%
- PRE-TAX PROFIT(Q) At JPY 117.04 MM has Grown at 178.89%
3
With ROE of 27.26%, it has a very attractive valuation with a 2.05 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 -70.97%, its profits have risen by 194% ; the PEG ratio of the company is 0
How much should you buy?
- Overall Portfolio exposure to FaithNetwork Co., 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 FaithNetwork Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
FaithNetwork Co., Ltd.
-69.86%
-0.69
75.71%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality key factors
Factor
Value
Sales Growth (5y)
20.70%
EBIT Growth (5y)
37.92%
EBIT to Interest (avg)
12.16
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
30.32%
Dividend Payout Ratio
35.13%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
246.36%
ROE (avg)
20.09%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
2.05
EV to EBIT
3.14
EV to EBITDA
3.02
EV to Capital Employed
4.06
EV to Sales
0.47
PEG Ratio
0.04
Dividend Yield
NA
ROCE (Latest)
129.21%
ROE (Latest)
27.26%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
13What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 115.52 times
NET SALES(Q)
At JPY 4,735 MM has Grown at 60.25%
PRE-TAX PROFIT(Q)
At JPY 117.04 MM has Grown at 178.89%
NET PROFIT(Q)
At JPY 64.13 MM has Grown at 156.88%
RAW MATERIAL COST(Y)
Fallen by -1.25% (YoY
CASH AND EQV(HY)
Highest at JPY 15,804.38 MM
-6What is not working for the Company
INTEREST(HY)
At JPY 212.5 MM has Grown at 14.83%
Here's what is working for FaithNetwork Co., Ltd.
Net Sales
At JPY 4,735 MM has Grown at 60.25%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 117.04 MM has Grown at 178.89%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 64.13 MM has Grown at 156.88%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Debtors Turnover Ratio
Highest at 115.52 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Cash and Eqv
Highest at JPY 15,804.38 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -1.25% (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 FaithNetwork Co., Ltd.
Interest
At JPY 212.5 MM has Grown at 14.83%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
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