GMO Financial Holdings, Inc. (7177) 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

Matsui Securities Co., Ltd.

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Daiwa Securities Group, Inc.

Japan Exchange Group, Inc.

Nihon M&A Center Holdings Inc.

Japan Securities Finance Co., Ltd.

Okasan Securities Group, Inc.

Aozora Bank Ltd.

Nomura Holdings, Inc.

Financial Partners Group Co., Ltd.

GMO Financial Holdings, Inc.

Why is GMO Financial Holdings, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 15.45%

Poor long term growth as Operating profit has grown by an annual rate of -1.93%

Flat results in Jun 25

With ROE of 9.29%, it has a very attractive valuation with a 1.97 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 25.43%, its profits have fallen by -38%

Underperformed the market in the last 1 year

The stock has generated a return of 25.43% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.59%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GMO Financial Holdings, Inc. 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 GMO Financial Holdings, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

GMO Financial Holdings, Inc.

-100.0%

0.43

24.37%

Japan Nikkei 225

38.59%

1.45

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.30%

EBIT Growth (5y)

-1.93%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

38.43%

Dividend Payout Ratio

68.08%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

15.45%

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

1.97

EV to EBIT

-38.51

EV to EBITDA

-27.38

EV to Capital Employed

0.87

EV to Sales

-6.15

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.26%

ROE (Latest)

9.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

26What is working for the Company

NET PROFIT(HY)

At JPY 6,228.12 MM has Grown at 245.06%

ROCE(HY)

Highest at 19.05%

DEBT-EQUITY RATIO (HY)

Lowest at -586.38 %

PRE-TAX PROFIT(Q)

At JPY 5,479 MM has Grown at 190.82%

DIVIDEND PAYOUT RATIO(Y)

Highest at 65.03%

RAW MATERIAL COST(Y)

Fallen by -2.72% (YoY

CASH AND EQV(HY)

Highest at JPY 935,752 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 0.49%

DIVIDEND PER SHARE(HY)

Highest at JPY 0.49

EPS(Q)

Highest at JPY 31.42

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for GMO Financial Holdings, Inc.

Pre-Tax Profit

At JPY 5,479 MM has Grown at 190.82%

over average net sales of the previous four periods of JPY 1,884 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 3,727.6 MM has Grown at 199.73%

over average net sales of the previous four periods of JPY 1,243.66 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -586.38 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Pre-Tax Profit

Highest at JPY 5,479 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 3,727.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 31.42

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 935,752 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 0.49%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 0.49

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 65.03%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.72% (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