Harima B.Stem Corp. (9780) 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

Harima B.Stem Corp.

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Shingakukai Holdings Co., Ltd.

Draft, Inc. (Japan)

Why is Harima B.Stem Corp. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 3.73% over the last 5 years

Positive results in Dec 25

ROCE(HY) Highest at 10.32%
INTEREST COVERAGE RATIO(Q) Highest at 18,572.42
RAW MATERIAL COST(Y) Fallen by -14.9% (YoY)

With ROE of 9.77%, it has a very attractive valuation with a 0.76 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 31.27%, its profits have risen by 18.8%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Harima B.Stem Corp. 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 Harima B.Stem Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Harima B.Stem Corp.

31.27%

1.16

24.92%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.73%

EBIT Growth (5y)

15.47%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

2.80

Tax Ratio

29.13%

Dividend Payout Ratio

27.54%

Pledged Shares

Institutional Holding

ROCE (avg)

19.70%

ROE (avg)

9.50%

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

0.76

EV to EBIT

2.65

EV to EBITDA

2.29

EV to Capital Employed

0.58

EV to Sales

0.11

PEG Ratio

Dividend Yield

ROCE (Latest)

21.80%

ROE (Latest)

9.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

12What is working for the Company

ROCE(HY)

Highest at 10.32%

INTEREST COVERAGE RATIO(Q)

Highest at 18,572.42

RAW MATERIAL COST(Y)

Fallen by -14.9% (YoY

CASH AND EQV(HY)

Highest at JPY 10,854.72 MM

NET SALES(Q)

Highest at JPY 8,179.02 MM

OPERATING PROFIT(Q)

Highest at JPY 498.3 MM

OPERATING PROFIT MARGIN(Q)

Highest at 6.09 %

PRE-TAX PROFIT(Q)

Highest at JPY 431.42 MM

NET PROFIT(Q)

Highest at JPY 295.78 MM

-9What is not working for the Company

INTEREST(HY)

At JPY 5.73 MM has Grown at 37.3%

DEBT-EQUITY RATIO (HY)

Highest at -41.6 %

Here's what is working for Harima B.Stem Corp.

Interest Coverage Ratio

Highest at 18,572.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 8,179.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 8,179.02 MM has Grown at 12.54%

over average net sales of the previous four periods of JPY 7,267.54 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 498.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 6.09 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 431.42 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 295.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 10,854.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -14.9% (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 87.86 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 Harima B.Stem Corp.

Interest

At JPY 5.73 MM has Grown at 37.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -41.6 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio