Gakkyusha Co., Ltd. (9769) 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

PR TIMES Corp.

Tokyo Individualized Educational Institute, Inc.

INTLOOP, Inc.

Business Brain Showa-ota, Inc.

HITO-Communications Holdings, Inc.

Gakkyusha Co., Ltd.

VINX Corp.

Japan Best Rescue System Co., Ltd.

NAC Co., Ltd.

Boutiques, Inc.

Microwave Chemical Co., Ltd.

Why is Gakkyusha Co., Ltd. ?

High Management Efficiency with a high ROCE of 43.38%

Company has very low debt and has enough cash to service the debt requirements

High Debt company with Weak Long Term Fundamental Strength

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,874.13
NET SALES(Q) Lowest at JPY 2,441.5 MM
INTEREST(Q) Highest at JPY 4.24 MM

With ROCE of 42.75%, it has a very attractive valuation with a 3.79 Enterprise value to Capital Employed

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 16.59%, its profits have risen by 5.4% ; the PEG ratio of the company is 2.3
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 16.59% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gakkyusha Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Gakkyusha Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gakkyusha Co., Ltd.

16.59%

0.50

21.46%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

12.02%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.67

Tax Ratio

28.60%

Dividend Payout Ratio

52.51%

Pledged Shares

Institutional Holding

ROCE (avg)

44.14%

ROE (avg)

29.86%

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

3.33

EV to EBIT

8.87

EV to EBITDA

7.50

EV to Capital Employed

3.79

EV to Sales

1.75

PEG Ratio

2.29

Dividend Yield

0.02%

ROCE (Latest)

42.75%

ROE (Latest)

26.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

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

4What is working for the Company

NET PROFIT(HY)

At JPY 265.32 MM has Grown at 73.37%

CASH AND EQV(HY)

Highest at JPY 4,919.05 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 146.88%

-18What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,874.13

NET SALES(Q)

Lowest at JPY 2,441.5 MM

INTEREST(Q)

Highest at JPY 4.24 MM

OPERATING PROFIT(Q)

Lowest at JPY 79.41 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.25 %

PRE-TAX PROFIT(Q)

Lowest at JPY -25.86 MM

EPS(Q)

Lowest at JPY -6.12

Here's what is working for Gakkyusha Co., Ltd.

Net Profit

At JPY 265.32 MM has Grown at 73.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 4,919.05 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 146.88%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Interest Coverage Ratio

Lowest at 1,874.13

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY -25.86 MM has Fallen at -47.4%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

Lowest at JPY 2,441.5 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 4.24 MM

in the last five periods and Increased by 7.81% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 79.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.25 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -25.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

EPS

Lowest at JPY -6.12

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)