FRANCE BED HOLDINGS CO., LTD. (7840) 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

Japan Lifeline Co., Ltd.

Jins Holdings, Inc.

FRANCE BED HOLDINGS CO., LTD.

Mani, Inc.

Fukuda Denshi Co., Ltd.

Medikit Co., Ltd.

Menicon Co., Ltd.

PHC Holdings Corp.

Eiken Chemical Co., Ltd.

Hogy Medical Co., Ltd.

Takara Bio, Inc.

Why is FRANCE BED HOLDINGS CO., LTD. ?

Poor Management Efficiency with a low ROE of 7.20%

The company has been able to generate a Return on Equity (avg) of 7.20% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 3.63% CAGR growth in Net Sales over the last 5 years

The company has been able to generate a Return on Equity (avg) of 7.20% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.63% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 6.8%
INTEREST(Q) At JPY 19 MM has Grown at 11.76%
DEBT-EQUITY RATIO (HY) Highest at 5.83 %

With ROE of 7.01%, it has a very attractive valuation with a 1.10 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 -4.61%, its profits have fallen by -15.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.61% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to FRANCE BED HOLDINGS CO., LTD. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is FRANCE BED HOLDINGS CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

FRANCE BED HOLDINGS CO., LTD.

-4.61%

0.27

15.66%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.63%

EBIT Growth (5y)

8.08%

EBIT to Interest (avg)

55.90

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

1.15

Tax Ratio

35.43%

Dividend Payout Ratio

49.97%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

11.50%

ROE (avg)

7.20%

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

1.10

EV to EBIT

9.27

EV to EBITDA

4.29

EV to Capital Employed

1.10

EV to Sales

0.68

PEG Ratio

Dividend Yield

ROCE (Latest)

11.85%

ROE (Latest)

7.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

Mildly Bullish

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

DIVIDEND PER SHARE(HY)

Highest at JPY 5.6

RAW MATERIAL COST(Y)

Fallen by 1.63% (YoY

NET SALES(Q)

Highest at JPY 16,959 MM

NET PROFIT(Q)

Highest at JPY 930.17 MM

EPS(Q)

Highest at JPY 22.58

-5What is not working for the Company

ROCE(HY)

Lowest at 6.8%

INTEREST(Q)

At JPY 19 MM has Grown at 11.76%

DEBT-EQUITY RATIO (HY)

Highest at 5.83 %

Here's what is working for FRANCE BED HOLDINGS CO., LTD.

Dividend per share

Highest at JPY 5.6 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 16,959 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 930.17 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 22.58

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by 1.63% (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 1,342 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 FRANCE BED HOLDINGS CO., LTD.

Interest

At JPY 19 MM has Grown at 11.76%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 5.83 %

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