Genki Sushi Co., Ltd. (9828) 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

CHIKARANOMOTO HOLDINGS Co., Ltd.

Genki Sushi Co., Ltd.

Watami Co., Ltd.

Matsuya Foods Holdings Co., Ltd.

KISOJI CO., LTD.

Ringer Hut Co., Ltd.

Fujio Food Group, Inc.

SFP Holdings Co. Ltd.

Koshidaka Holdings Co., Ltd.

Kappa Create Co., Ltd.

KFC Holdings Japan Ltd.

Why is Genki Sushi Co., Ltd. ?

Low Debt Company with Strong Long Term Fundamental Strength

Healthy long term growth as Net Sales has grown by an annual rate of 9.21%
Company has a low Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 34.50% signifying high profitability per unit of total capital (equity and debt)

The company has declared Positive results for the last 12 consecutive quarters

NO KEY POSITIVE TRIGGERS

With ROE of 30.71%, it has a very attractive valuation with a 4.29 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 -18.53%, its profits have risen by 49.6% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -18.53% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Genki Sushi Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is Genki Sushi Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Genki Sushi Co., Ltd.

-18.53%

-0.32

33.69%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.21%

EBIT Growth (5y)

28.07%

EBIT to Interest (avg)

34.29

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

3.61

Tax Ratio

25.31%

Dividend Payout Ratio

24.92%

Pledged Shares

Institutional Holding

ROCE (avg)

34.50%

ROE (avg)

14.50%

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

4.29

EV to EBIT

9.47

EV to EBITDA

7.38

EV to Capital Employed

7.86

EV to Sales

0.95

PEG Ratio

0.28

Dividend Yield

0.01%

ROCE (Latest)

83.03%

ROE (Latest)

30.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

2What is working for the Company

NO KEY POSITIVE TRIGGERS

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 3,655 MM

DEBT-EQUITY RATIO (HY)

Highest at 20.95 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.31 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.74 times

OPERATING PROFIT(Q)

Lowest at JPY 1,408 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.08 %

PRE-TAX PROFIT(Q)

Lowest at JPY 996 MM

NET PROFIT(Q)

Lowest at JPY 786.81 MM

Here's what is working for Genki Sushi Co., Ltd.

Depreciation

Highest at JPY 477 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 Genki Sushi Co., Ltd.

Operating Cash Flow

Lowest at JPY 3,655 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Operating Profit

Lowest at JPY 1,408 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 996 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 996 MM has Fallen at -36.23%

over average net sales of the previous four periods of JPY 1,561.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 786.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 786.81 MM has Fallen at -33.93%

over average net sales of the previous four periods of JPY 1,190.82 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 20.95 %

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 8.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 16.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio