H-One Co., Ltd. (5989) 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

Takebishi Corp.

Yashima Denki Co., Ltd.

JK Holdings Co., Ltd.

Meiwa Corp.

Seika Corp.

Sugimoto & Co., Ltd.

H-One Co., Ltd.

GL Sciences Inc.

Soft99 Corp.

Sumiseki Holdings, Inc.

Watahan & Co., Ltd.

Why is H-One Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.07%

The company has been able to generate a Return on Capital Employed (avg) of 4.07% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 4.55% and Operating profit at 37.27% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.14% signifying low profitability per unit of shareholders funds

The company has declared negative results in Mar'2025 after 2 consecutive positive quarters

INTEREST(HY) At JPY 1,199 MM has Grown at 29.48%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.67%
NET SALES(Q) Lowest at JPY 50,677 MM

With ROCE of 13.05%, it has a very attractive valuation with a 0.74 Enterprise value to Capital Employed

Over the past year, while the stock has generated a return of 26.92%, its profits have risen by 154.5% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to H-One Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is H-One Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

H-One Co., Ltd.

24.4%

1.00

43.89%

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)

4.55%

EBIT Growth (5y)

37.27%

EBIT to Interest (avg)

2.40

Debt to EBITDA (avg)

2.92

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

1.76

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

13.06%

Pledged Shares

Institutional Holding

ROCE (avg)

4.06%

ROE (avg)

4.14%

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

0.55

EV to EBIT

5.66

EV to EBITDA

3.39

EV to Capital Employed

0.74

EV to Sales

0.36

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

13.05%

ROE (Latest)

18.06%

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

No Trend

OBV

Mildly Bearish

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

14What is working for the Company

NET PROFIT(HY)

Higher at JPY 5,038 MM

ROCE(HY)

Highest at 15.65%

RAW MATERIAL COST(Y)

Fallen by -2.81% (YoY

CASH AND EQV(HY)

Highest at JPY 38,583 MM

-16What is not working for the Company

INTEREST(HY)

At JPY 1,199 MM has Grown at 29.48%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.67%

NET SALES(Q)

Lowest at JPY 50,677 MM

NET PROFIT(Q)

Lowest at JPY 1,606 MM

EPS(Q)

Lowest at JPY 56.56

Here's what is working for H-One Co., Ltd.

Cash and Eqv

Highest at JPY 38,583 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.81% (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 H-One Co., Ltd.

Interest

At JPY 1,199 MM has Grown at 29.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 50,677 MM has Fallen at -11.15%

over average net sales of the previous four periods of JPY 57,036.25 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 50,677 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Profit

Lowest at JPY 1,606 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 1,606 MM has Fallen at -40.12%

over average net sales of the previous four periods of JPY 2,682 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 56.56

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 6.67%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio