First Brothers Co., Ltd. (3454) 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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First Brothers Co., Ltd.

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Why is First Brothers Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.04%

Poor long term growth as Net Sales has grown by an annual rate of 4.00% and Operating profit at 16.44%

NET SALES(Q) At JPY 3,789.29 MM has Fallen at -20.49%
PRE-TAX PROFIT(Q) At JPY 318.48 MM has Fallen at -72.15%
RAW MATERIAL COST(Y) Grown by 24.13% (YoY)

With ROE of 6.70%, it has a very attractive valuation with a 0.66 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 21.38%, its profits have risen by 21% ; the PEG ratio of the company is 0.5

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Underperformed the market in the last 1 year

The stock has generated a return of 21.38% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 71.75%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to First Brothers Co., Ltd. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

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

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

Is First Brothers Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

First Brothers Co., Ltd.

20.97%

-0.05

19.55%

Japan Nikkei 225

71.75%

2.70

26.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.00%

EBIT Growth (5y)

16.44%

EBIT to Interest (avg)

6.91

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

33.78%

Dividend Payout Ratio

28.05%

Pledged Shares

Institutional Holding

ROCE (avg)

29.20%

ROE (avg)

10.04%

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

0.66

EV to EBIT

1.73

EV to EBITDA

1.37

EV to Capital Employed

0.51

EV to Sales

0.48

PEG Ratio

0.46

Dividend Yield

ROCE (Latest)

29.16%

ROE (Latest)

6.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

12What is working for the Company

NET SALES(9M)

At JPY 17,475.97 MM has Grown at 17.75%

NET PROFIT(HY)

Higher at JPY 2,228.25 MM

DEBT-EQUITY RATIO (HY)

Lowest at 198.93 %

-17What is not working for the Company

NET SALES(Q)

At JPY 3,789.29 MM has Fallen at -20.49%

PRE-TAX PROFIT(Q)

At JPY 318.48 MM has Fallen at -72.15%

RAW MATERIAL COST(Y)

Grown by 24.13% (YoY

CASH AND EQV(HY)

Lowest at JPY 11,340.71 MM

INTEREST(Q)

Highest at JPY 217.31 MM

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

Net Profit

At JPY 2,228.25 MM has Grown at 130.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Higher at JPY 2,228.25 MM

than preceding 12 month period ended Feb 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 198.93 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for First Brothers Co., Ltd.

Net Sales

At JPY 3,789.29 MM has Fallen at -20.49%

over average net sales of the previous four periods of JPY 4,765.93 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 318.48 MM has Fallen at -72.15%

over average net sales of the previous four periods of JPY 1,143.6 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 217.31 MM has Grown at 10.02%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 217.31 MM

in the last five periods and Increased by 10.02% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 11,340.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 24.13% (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