Hakuyosha Co., Ltd. (9731) 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

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Why is Hakuyosha Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.65% 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 5.76% signifying low profitability per unit of total capital (equity and debt)

With a growth in Operating Profit of 716.38%, the company declared Very Positive results in Mar 26

PRE-TAX PROFIT(Q) At JPY 1,075 MM has Grown at 732.35%
NET PROFIT(Q) At JPY 795 MM has Grown at 1,304.55%
DEBT-EQUITY RATIO (HY) Lowest at 52.47 %

With ROCE of 11.47%, it has a attractive valuation with a 1.08 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 13.28%, its profits have fallen by -4.1%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 13.28% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hakuyosha Co., Ltd. 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 Hakuyosha Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hakuyosha Co., Ltd.

-100.0%

1.67

24.17%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.65%

EBIT Growth (5y)

20.17%

EBIT to Interest (avg)

-0.62

Debt to EBITDA (avg)

3.54

Net Debt to Equity (avg)

0.89

Sales to Capital Employed (avg)

2.10

Tax Ratio

20.89%

Dividend Payout Ratio

14.22%

Pledged Shares

Institutional Holding

ROCE (avg)

5.76%

ROE (avg)

14.81%

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

1.12

EV to EBIT

9.38

EV to EBITDA

6.21

EV to Capital Employed

1.08

EV to Sales

0.50

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

11.47%

ROE (Latest)

17.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 1,075 MM has Grown at 732.35%

NET PROFIT(Q)

At JPY 795 MM has Grown at 1,304.55%

DEBT-EQUITY RATIO (HY)

Lowest at 52.47 %

RAW MATERIAL COST(Y)

Fallen by -16.32% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 11.31 times

-8What is not working for the Company

INTEREST(HY)

At JPY 120 MM has Grown at 16.5%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.93 times

Here's what is working for Hakuyosha Co., Ltd.

Pre-Tax Profit

At JPY 1,075 MM has Grown at 732.35%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 795 MM has Grown at 1,304.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 52.47 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 11.31 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -16.32% (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 Hakuyosha Co., Ltd.

Interest

At JPY 120 MM has Grown at 16.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 5.93 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 1.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income