FAST RETAILING CO., LTD. (9983) 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

UNITED ARROWS LTD.

Adastria Co., Ltd.

FAST RETAILING CO., LTD.

SHIMAMURA Co., Ltd.

PAL GROUP Holdings Co., Ltd.

AOKI Holdings, Inc.

NISHIMATSUYA CHAIN Co., Ltd.

AOYAMA TRADING Co., Ltd.

Chiyoda Co., Ltd.

Baroque Japan Ltd.

XEBIO Holdings Co., Ltd.

Why is FAST RETAILING CO., LTD. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 18.14%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 40.45

With a growth in Net Profit of 11.33%, the company declared Very Positive results in May 26

OPERATING CASH FLOW(Y) Highest at JPY 803,592 MM
NET SALES(HY) At JPY 2,037,437 MM has Grown at 18.35%
ROCE(HY) Highest at 21.47%

With ROE of 19.46%, it has a fair valuation with a 9.91 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 75.66%, its profits have risen by 18.6% ; the PEG ratio of the company is 2.7

Majority shareholders : FIIs

Market Beating performance in long term as well as near term

Along with generating 75.66% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to FAST RETAILING CO., LTD. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is FAST RETAILING CO., LTD. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

FAST RETAILING CO., LTD.

75.66%

368.09

34.20%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.85%

EBIT Growth (5y)

24.62%

EBIT to Interest (avg)

42.80

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

1.29

Tax Ratio

29.05%

Dividend Payout Ratio

35.42%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

38.96%

ROE (avg)

18.14%

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

9.91

EV to EBIT

39.77

EV to EBITDA

29.42

EV to Capital Employed

13.56

EV to Sales

6.91

PEG Ratio

2.74

Dividend Yield

ROCE (Latest)

34.10%

ROE (Latest)

19.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 803,592 MM

NET SALES(HY)

At JPY 2,037,437 MM has Grown at 18.35%

ROCE(HY)

Highest at 21.47%

INTEREST COVERAGE RATIO(Q)

Highest at 7,410.95

RAW MATERIAL COST(Y)

Fallen by -4.95% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.17 times

OPERATING PROFIT(Q)

Highest at JPY 264,645 MM

OPERATING PROFIT MARGIN(Q)

Highest at 26.2 %

PRE-TAX PROFIT(Q)

Highest at JPY 229,601 MM

-8What is not working for the Company

INTEREST(HY)

At JPY 7,018 MM has Grown at 13.58%

Here's what is working for FAST RETAILING CO., LTD.

Operating Cash Flow

Highest at JPY 803,592 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Interest Coverage Ratio

Highest at 7,410.95

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At JPY 2,037,437 MM has Grown at 18.35%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 264,645 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 26.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 229,601 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Highest at 4.17 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -4.95% (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

Depreciation

Highest at JPY 58,893 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for FAST RETAILING CO., LTD.

Interest

At JPY 7,018 MM has Grown at 13.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)