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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jins Holdings, Inc.

Eiken Chemical Co., Ltd.

Fukuda Denshi Co., Ltd.

Japan Lifeline Co., Ltd.

FRANCE BED HOLDINGS CO., LTD.

Mani, Inc.

Medikit Co., Ltd.

PHC Holdings Corp.

Menicon Co., Ltd.

Hogy Medical Co., Ltd.

Takara Bio, Inc.

Why is FRANCE BED HOLDINGS CO., LTD. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 51.49

Poor long term growth as Net Sales has grown by an annual rate of 2.93% over the last 5 years

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 11,722.22
DEBT-EQUITY RATIO (HY) Highest at -6.1 %
INVENTORY TURNOVER RATIO(HY) Lowest at 2.96%

With ROE of 7.28%, it has a very attractive valuation with a 1.20 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 6.34%, its profits have fallen by -5.7%

Underperformed the market in the last 1 year

The stock has generated a return of 6.34% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

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.

5.66%

0.84

15.16%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.93%

EBIT Growth (5y)

13.51%

EBIT to Interest (avg)

51.49

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

1.17

Tax Ratio

35.92%

Dividend Payout Ratio

46.91%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

11.27%

ROE (avg)

7.19%

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

1.20

EV to EBIT

9.95

EV to EBITDA

4.66

EV to Capital Employed

1.21

EV to Sales

0.77

PEG Ratio

Dividend Yield

ROCE (Latest)

12.17%

ROE (Latest)

7.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.45% (YoY

-10What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 11,722.22

DEBT-EQUITY RATIO (HY)

Highest at -6.1 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.96%

NET SALES(Q)

Lowest at JPY 14,362 MM

OPERATING PROFIT(Q)

Lowest at JPY 2,110 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.69 %

PRE-TAX PROFIT(Q)

Lowest at JPY 789 MM

NET PROFIT(Q)

Lowest at JPY 477 MM

EPS(Q)

Lowest at JPY 13.7

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

Raw Material Cost

Fallen by -3.45% (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 FRANCE BED HOLDINGS CO., LTD.

Interest Coverage Ratio

Lowest at 11,722.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 14,362 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 2,110 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 14.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 789 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 477 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 13.7

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -6.1 %

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

Inventory Turnover Ratio

Lowest at 2.96%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio