ScoreWhy is Gunze Ltd. ?
1
Poor Management Efficiency with a low ROE of 5.42%
- The company has been able to generate a Return on Equity (avg) of 5.42% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 10.18% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 5.42% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 1.36% and Operating profit at 10.18% over the last 5 years
4
Negative results in Jun 26
- NET PROFIT(HY) At JPY 2,264.65 MM has Grown at -49.71%
- DEBT-EQUITY RATIO (HY) Highest at 7.86 %
- INTEREST(Q) Highest at JPY 32 MM
5
With ROE of 6.59%, it has a very attractive valuation with a 1.08 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 12.74%, its profits have risen by 1%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Gunze Ltd. should be less than 10%
- Overall Portfolio exposure to Footwear should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Gunze Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Gunze Ltd.
12.74%
2.28
21.64%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.36%
EBIT Growth (5y)
10.18%
EBIT to Interest (avg)
49.13
Debt to EBITDA (avg)
0.13
Net Debt to Equity (avg)
-0.01
Sales to Capital Employed (avg)
1.04
Tax Ratio
48.86%
Dividend Payout Ratio
930.20%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
5.22%
ROE (avg)
5.42%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.08
EV to EBIT
17.98
EV to EBITDA
8.96
EV to Capital Employed
1.07
EV to Sales
0.96
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.98%
ROE (Latest)
6.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 2.52 times
RAW MATERIAL COST(Y)
Fallen by -11.94% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 5.46 times
OPERATING PROFIT(Q)
Highest at JPY 5,235 MM
OPERATING PROFIT MARGIN(Q)
Highest at 16.69 %
PRE-TAX PROFIT(Q)
Highest at JPY 3,442 MM
NET PROFIT(Q)
Highest at JPY 2,673.65 MM
EPS(Q)
Highest at JPY 84.08
-18What is not working for the Company
NET PROFIT(HY)
At JPY 2,264.65 MM has Grown at -49.71%
DEBT-EQUITY RATIO
(HY)
Highest at 7.86 %
INTEREST(Q)
Highest at JPY 32 MM
Here's what is working for Gunze Ltd.
Inventory Turnover Ratio
Highest at 2.52 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Operating Profit
Highest at JPY 5,235 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 16.69 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 3,442 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 3,442 MM has Grown at 94.35%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 2,673.65 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 84.08
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Highest at 5.46 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -11.94% (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 Gunze Ltd.
Interest
At JPY 32 MM has Grown at 23.08%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 7.86 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest
Highest at JPY 32 MM
in the last five periods and Increased by 23.08% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
