Hakuten Corp. (2173) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hakuten Corp.

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CERESPO CO., LTD.

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Shingakukai Holdings Co., Ltd.

Draft, Inc. (Japan)

Why is Hakuten Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 27.15%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 78.72

With a growth in Net Profit of 100.85%, the company declared Outstanding results in Dec 25

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by 0.07% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at -64.48 %

With ROE of 29.59%, it has a very attractive valuation with a 2.48 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 73.39%, its profits have risen by 8.2%

Market Beating Performance

The stock has generated a return of 73.39% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Hakuten Corp. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Hakuten Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Hakuten Corp.

-100.0%

2.16

43.71%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.58%

EBIT Growth (5y)

16.37%

EBIT to Interest (avg)

78.72

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

3.74

Tax Ratio

28.16%

Dividend Payout Ratio

29.44%

Pledged Shares

Institutional Holding

ROCE (avg)

40.93%

ROE (avg)

27.15%

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

2.48

EV to EBIT

5.31

EV to EBITDA

4.81

EV to Capital Employed

3.02

EV to Sales

0.40

PEG Ratio

Dividend Yield

ROCE (Latest)

56.85%

ROE (Latest)

29.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

29What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by 0.07% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -64.48 %

NET SALES(Q)

Highest at JPY 8,385.38 MM

OPERATING PROFIT(Q)

Highest at JPY 1,060.67 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,015.48 MM

NET PROFIT(Q)

Highest at JPY 850.47 MM

EPS(Q)

Highest at JPY 54.42

-6What is not working for the Company

INTEREST(HY)

At JPY 8.73 MM has Grown at 7.93%

Here's what is working for Hakuten Corp.

Net Sales

At JPY 8,385.38 MM has Grown at 39.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 8,385.38 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,060.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 1,015.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 1,015.48 MM has Grown at 94.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 850.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 850.47 MM has Grown at 100.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 54.42

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at -64.48 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.07% (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

Depreciation

Highest at JPY 40.28 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Hakuten Corp.

Interest

At JPY 8.73 MM has Grown at 7.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)