Happinet Corp. (7552) 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

Happinet Corp.

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Why is Happinet Corp. ?

Strong Long Term Fundamental Strength with a 10.74% 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 40.66% signifying high profitability per unit of total capital (equity and debt)

With a growth in Net Sales of 22.54%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
ROCE(HY) Highest at 17.41%
CASH AND EQV(HY) Highest at JPY 70,340 MM
DEBT-EQUITY RATIO (HY) Lowest at -84.31 %

With ROE of 18.01%, it has a very attractive valuation with a 2.33 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 -53.48%, its profits have risen by 55.8%

Real-Time Research Report

Verdict Report

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Happinet Corp.

-52.45%

-0.46

62.54%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.74%

EBIT Growth (5y)

31.43%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.74

Sales to Capital Employed (avg)

6.71

Tax Ratio

36.09%

Dividend Payout Ratio

42.37%

Pledged Shares

Institutional Holding

ROCE (avg)

40.66%

ROE (avg)

9.61%

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

2.33

EV to EBIT

8.05

EV to EBITDA

7.11

EV to Capital Employed

2.96

EV to Sales

0.29

PEG Ratio

Dividend Yield

ROCE (Latest)

36.76%

ROE (Latest)

18.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

12What is working for the Company

ROCE(HY)

Highest at 17.41%

CASH AND EQV(HY)

Highest at JPY 70,340 MM

DEBT-EQUITY RATIO (HY)

Lowest at -84.31 %

INVENTORY TURNOVER RATIO(HY)

Highest at 45.94 times

DEBTORS TURNOVER RATIO(HY)

Highest at 9.17 times

DIVIDEND PER SHARE(HY)

Highest at JPY 9.17

NET SALES(Q)

At JPY 99,552 MM has Grown at 22.54%

-6What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.59% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 2.53 %

NET PROFIT(Q)

Lowest at JPY 473.83 MM

EPS(Q)

Lowest at JPY 10.83

Here's what is working for Happinet Corp.

Net Sales

At JPY 99,552 MM has Grown at 22.54%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 70,340 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -84.31 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 45.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 9.17 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 9.17

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for Happinet Corp.

Net Profit

At JPY 473.83 MM has Fallen at -62.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit Margin

Lowest at 2.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 473.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 10.83

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 5.59% (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