ScoreWhy is Handsman Co., Ltd. ?
1
High Management Efficiency with a high ROE of 8.16%
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of 1.91% and Operating profit at -12.85% over the last 5 years
4
Negative results in Jun 25
- INTEREST(HY) At JPY 9 MM has Grown at 12.5%
- CASH AND EQV(HY) Lowest at JPY 3,015 MM
5
With ROE of 5.25%, it has a very attractive valuation with a 0.68 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 -0.86%, its profits have risen by 26% ; the PEG ratio of the company is 0.5
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -0.86% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Handsman Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Handsman Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Handsman Co., Ltd.
-0.86%
-0.75
13.16%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.91%
EBIT Growth (5y)
-12.85%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.69
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
1.56
Tax Ratio
28.31%
Dividend Payout Ratio
40.40%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.30%
ROE (avg)
8.16%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.68
EV to EBIT
13.73
EV to EBITDA
7.32
EV to Capital Employed
0.72
EV to Sales
0.42
PEG Ratio
0.50
Dividend Yield
NA
ROCE (Latest)
5.22%
ROE (Latest)
5.25%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 16,425
RAW MATERIAL COST(Y)
Fallen by -2.16% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.23%
NET SALES(Q)
Highest at JPY 9,375 MM
OPERATING PROFIT(Q)
Highest at JPY 657 MM
OPERATING PROFIT MARGIN(Q)
Highest at 7.01 %
PRE-TAX PROFIT(Q)
Highest at JPY 535 MM
NET PROFIT(Q)
Highest at JPY 359 MM
EPS(Q)
Highest at JPY 26.03
-7What is not working for the Company
INTEREST(HY)
At JPY 9 MM has Grown at 12.5%
CASH AND EQV(HY)
Lowest at JPY 3,015 MM
Here's what is working for Handsman Co., Ltd.
Interest Coverage Ratio
Highest at 16,425
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at JPY 9,375 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 657 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 7.01 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 535 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 535 MM has Grown at 64.62%
over average net sales of the previous four periods of JPY 325 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 359 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 26.03
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Highest at 3.23%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -2.16% (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 Handsman Co., Ltd.
Interest
At JPY 9 MM has Grown at 12.5%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 3,015 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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