Comparison
Why is Happinet Corp. ?
1
Strong Long Term Fundamental Strength with a 9.33% CAGR growth in Net Sales
- Company has very low debt and has enough cash to service the debt requirements
- The company has been able to generate a Return on Capital Employed (avg) of 40.46% signifying high profitability per unit of total capital (equity and debt)
2
Positive results in Jun 25
- CASH AND EQV(HY) Highest at JPY 67,368 MM
- OPERATING PROFIT(Q) Highest at JPY 4,452 MM
- OPERATING PROFIT MARGIN(Q) Highest at 4.64 %
3
With ROE of 13.58%, it has a very attractive valuation with a 2.26 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 33.48%, its profits have risen by 28.8% ; the PEG ratio of the company is 0.6
4
Consistent Returns over the last 3 years
- Along with generating 33.48% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods
How much should you buy?
- Overall Portfolio exposure to Happinet Corp. should be less than 10%
- Overall Portfolio exposure to Trading & Distributors should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Happinet Corp. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Happinet Corp.
35.46%
1.50
43.38%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
9.33%
EBIT Growth (5y)
34.99%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.74
Sales to Capital Employed (avg)
6.75
Tax Ratio
36.09%
Dividend Payout Ratio
42.37%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
40.66%
ROE (avg)
9.61%
Valuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
2.25
EV to EBIT
7.33
EV to EBITDA
6.07
EV to Capital Employed
5.76
EV to Sales
0.23
PEG Ratio
0.58
Dividend Yield
NA
ROCE (Latest)
78.63%
ROE (Latest)
13.58%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
6What is working for the Company
CASH AND EQV(HY)
Highest at JPY 67,368 MM
OPERATING PROFIT(Q)
Highest at JPY 4,452 MM
OPERATING PROFIT MARGIN(Q)
Highest at 4.64 %
PRE-TAX PROFIT(Q)
Highest at JPY 4,067 MM
NET PROFIT(Q)
Highest at JPY 3,319 MM
EPS(Q)
Highest at JPY 148.82
-1What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 5.25% (YoY
Here's what is working for Happinet Corp.
Operating Profit
Highest at JPY 4,452 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 4.64 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 4,067 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 3,319 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 148.82
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 67,368 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Happinet Corp.
Raw Material Cost
Grown by 5.25% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






