Why is Hagoromo Foods Corp. ?
1
Poor Management Efficiency with a low ROE of 4.79%
- The company has been able to generate a Return on Equity (avg) of 4.79% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a -4.92% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 4.79% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -2.25% and Operating profit at -4.92% over the last 5 years
- ROCE(HY) Highest at 7.26%
- RAW MATERIAL COST(Y) Fallen by -1.17% (YoY)
- CASH AND EQV(HY) Highest at JPY 8,965.31 MM
4
With ROE of 5.33%, it has a fair valuation with a 0.76 Price to Book Value
- Over the past year, while the stock has generated a return of 8.85%, its profits have risen by 4% ; the PEG ratio of the company is 3.6
5
Underperformed the market in the last 1 year
- The stock has generated a return of 8.85% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 43.58%
How much should you hold?
- Overall Portfolio exposure to Hagoromo Foods Corp. should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hagoromo Foods Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hagoromo Foods Corp.
-100.0%
1.11
12.52%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.25%
EBIT Growth (5y)
-4.92%
EBIT to Interest (avg)
88.31
Debt to EBITDA (avg)
1.24
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
1.62
Tax Ratio
29.70%
Dividend Payout Ratio
24.98%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.73%
ROE (avg)
4.79%
Valuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.76
EV to EBIT
12.37
EV to EBITDA
8.44
EV to Capital Employed
0.77
EV to Sales
0.49
PEG Ratio
3.60
Dividend Yield
NA
ROCE (Latest)
6.20%
ROE (Latest)
5.33%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
18What is working for the Company
ROCE(HY)
Highest at 7.26%
RAW MATERIAL COST(Y)
Fallen by -1.17% (YoY
CASH AND EQV(HY)
Highest at JPY 8,965.31 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -0.01 %
NET SALES(Q)
Highest at JPY 19,973.11 MM
PRE-TAX PROFIT(Q)
Highest at JPY 2,359.85 MM
NET PROFIT(Q)
Highest at JPY 1,616.11 MM
EPS(Q)
Highest at JPY 172.53
-9What is not working for the Company
INTEREST(HY)
At JPY 27.48 MM has Grown at 148.81%
INVENTORY TURNOVER RATIO(HY)
Lowest at 4 times
Here's what is working for Hagoromo Foods Corp.
Pre-Tax Profit
At JPY 2,359.85 MM has Grown at 152.29%
over average net sales of the previous four periods of JPY 935.38 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 1,616.11 MM has Grown at 145.79%
over average net sales of the previous four periods of JPY 657.52 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Sales
Highest at JPY 19,973.11 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
Highest at JPY 2,359.85 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 1,616.11 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 172.53
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 8,965.31 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -0.01 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -1.17% (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 Hagoromo Foods Corp.
Interest
At JPY 27.48 MM has Grown at 148.81%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 4 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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