ScoreWhy is H2O Retailing Corp. ?
1
Poor Management Efficiency with a low ROCE of 3.68%
- The company has been able to generate a Return on Capital Employed (avg) of 3.68% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -1.99% and Operating profit at 64.62% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Capital Employed (avg) of 3.68% signifying low profitability per unit of total capital (equity and debt)
3
Poor long term growth as Net Sales has grown by an annual rate of -1.99% and Operating profit at 64.62% over the last 5 years
4
Flat results in Jun 26
- INTEREST(HY) At JPY 541 MM has Grown at 31.95%
- INTEREST COVERAGE RATIO(Q) Lowest at 4,946.01
5
With ROCE of 7.92%, it has a fair valuation with a 1.03 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 33.57%, its profits have fallen by -26.4%
- 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 H2O Retailing Corp. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is H2O Retailing Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
H2O Retailing Corp.
35.74%
0.47
27.66%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-1.99%
EBIT Growth (5y)
64.62%
EBIT to Interest (avg)
22.86
Debt to EBITDA (avg)
3.37
Net Debt to Equity (avg)
0.33
Sales to Capital Employed (avg)
1.50
Tax Ratio
13.09%
Dividend Payout Ratio
18.08%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
5.31%
ROE (avg)
7.83%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.04
EV to EBIT
13.05
EV to EBITDA
6.99
EV to Capital Employed
1.03
EV to Sales
0.58
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.92%
ROE (Latest)
11.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NET PROFIT(HY)
At JPY 22,153.38 MM has Grown at 169.86%
RAW MATERIAL COST(Y)
Fallen by -3.7% (YoY
-10What is not working for the Company
INTEREST(HY)
At JPY 541 MM has Grown at 31.95%
INTEREST COVERAGE RATIO(Q)
Lowest at 4,946.01
Here's what is working for H2O Retailing Corp.
Net Profit
At JPY 22,153.38 MM has Grown at 169.86%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Raw Material Cost
Fallen by -3.7% (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 H2O Retailing Corp.
Interest
At JPY 541 MM has Grown at 31.95%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 4,946.01
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
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."
