Hamakyorex Co., Ltd. (9037) 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

SG Holdings Co., Ltd.

Hamakyorex Co., Ltd.

Mitsubishi Logistics Corp.

Konoike Transport Co., Ltd.

Fukuyama Transporting Co., Ltd.

Toyo Logistics Co., Ltd.

SENKO Group Holdings Co., Ltd.

Yamato Holdings Co., Ltd.

Nippon Express Holdings, Inc.

Alps Logistics Co., Ltd.

TRANCOM Co., Ltd.

Why is Hamakyorex Co., Ltd. ?

High Management Efficiency with a high ROE of 11.09%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 78.26

Poor long term growth as Operating profit has grown by an annual rate 6.60% of over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 6,528.57
INTEREST(Q) Highest at JPY 77 MM

With ROE of 11.24%, it has a attractive valuation with a 1.46 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 33.36%, its profits have risen by 5.5% ; the PEG ratio of the company is 2.4

Underperformed the market in the last 1 year

The stock has generated a return of 33.36% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hamakyorex Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is Hamakyorex Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hamakyorex Co., Ltd.

33.36%

3.75

20.52%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.97%

EBIT Growth (5y)

6.60%

EBIT to Interest (avg)

78.26

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

1.29

Tax Ratio

31.42%

Dividend Payout Ratio

29.14%

Pledged Shares

Institutional Holding

ROCE (avg)

14.71%

ROE (avg)

11.09%

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

1.46

EV to EBIT

10.07

EV to EBITDA

6.88

EV to Capital Employed

1.44

EV to Sales

0.94

PEG Ratio

2.39

Dividend Yield

ROCE (Latest)

14.33%

ROE (Latest)

11.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bearish

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

8What is working for the Company

ROCE(HY)

Highest at 11.43%

DIVIDEND PER SHARE(HY)

Highest at JPY 7.69

RAW MATERIAL COST(Y)

Fallen by -4.77% (YoY

PRE-TAX PROFIT(Q)

Highest at JPY 4,702 MM

NET PROFIT(Q)

Highest at JPY 3,107.23 MM

EPS(Q)

Highest at JPY 41.64

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 6,528.57

INTEREST(Q)

Highest at JPY 77 MM

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

Dividend per share

Highest at JPY 7.69 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Pre-Tax Profit

Highest at JPY 4,702 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 3,107.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 41.64

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -4.77% (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 1,883 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 Hamakyorex Co., Ltd.

Interest

At JPY 77 MM has Grown at 14.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 6,528.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 77 MM

in the last five periods and Increased by 14.93% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Non Operating Income

Highest at JPY 0.35 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income