First Baking Co., Ltd. (2215) 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

AHJIKAN CO., LTD.

First Baking Co., Ltd.

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Nichiryo Baking Co., Ltd.

THE NIHON SEIMA CO., LTD.

Ishii Food Co., Ltd.

Seihyo Co., Ltd.

Asahimatsu Foods Co., Ltd.

Why is First Baking Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.37%

The company has been able to generate a Return on Capital Employed (avg) of 4.37% 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 0.01 times

Poor long term growth as Net Sales has grown by an annual rate of 4.74% and Operating profit at 25.74% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.01 times
The company has been able to generate a Return on Equity (avg) of 7.77% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.74% and Operating profit at 25.74% over the last 5 years

With a growth in Net Profit of 389.47%, the company declared Very Positive results in Mar 26

NET PROFIT(Q) At JPY 186 MM has Grown at 389.47%
INTEREST COVERAGE RATIO(Q) Highest at 11,150
RAW MATERIAL COST(Y) Fallen by -3.94% (YoY)

With ROE of 5.36%, it has a fair valuation with a 0.47 Price to Book Value

Over the past year, while the stock has generated a return of 14.21%, its profits have fallen by -76.1%
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to First Baking Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is First Baking Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

First Baking Co., Ltd.

14.93%

-0.31

18.85%

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)

4.74%

EBIT Growth (5y)

25.74%

EBIT to Interest (avg)

9.34

Debt to EBITDA (avg)

254.62

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

3.23

Tax Ratio

29.73%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.63%

ROE (avg)

7.77%

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

0.47

EV to EBIT

2.13

EV to EBITDA

1.16

EV to Capital Employed

0.24

EV to Sales

0.05

PEG Ratio

Dividend Yield

0.17%

ROCE (Latest)

11.30%

ROE (Latest)

5.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

13What is working for the Company

NET PROFIT(Q)

At JPY 186 MM has Grown at 389.47%

INTEREST COVERAGE RATIO(Q)

Highest at 11,150

RAW MATERIAL COST(Y)

Fallen by -3.94% (YoY

OPERATING PROFIT(Q)

Highest at JPY 446 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.99 %

PRE-TAX PROFIT(Q)

Highest at JPY 292 MM

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 38.62 times

Here's what is working for First Baking Co., Ltd.

Pre-Tax Profit

At JPY 292 MM has Grown at 305.56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 186 MM has Grown at 389.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Interest Coverage Ratio

Highest at 11,150

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 446 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 5.99 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 292 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -3.94% (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 151 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 First Baking Co., Ltd.

Inventory Turnover Ratio

Lowest at 38.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio