Heiwa Corp. (6412) 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

Tohokushinsha Film Corp.

Toho Co., Ltd. (9602)

COVER Corp.

Heiwa Corp.

Toei Animation Co., Ltd.

Toei Co., Ltd.

Shochiku Co., Ltd.

PIA Corp.

AEON Fantasy Co., Ltd.

Oriental Land Co., Ltd.

ROUND ONE Corp.

Why is Heiwa Corp. ?

With a growth in Operating Profit of 75.13%, the company declared Very Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at JPY 37,265 MM
NET PROFIT(9M) Higher at JPY 16,982.06 MM
CASH AND EQV(HY) Highest at JPY 165,128 MM

With ROCE of 3.55%, it has a very attractive valuation with a 0.95 Enterprise value to Capital Employed

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 -22.55%, its profits have fallen by -22%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Heiwa Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Heiwa Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Heiwa Corp.

-22.55%

-0.32

17.21%

Japan Nikkei 225

36.73%

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)

0.18%

EBIT Growth (5y)

3.29%

EBIT to Interest (avg)

36.71

Debt to EBITDA (avg)

4.62

Net Debt to Equity (avg)

2.20

Sales to Capital Employed (avg)

0.34

Tax Ratio

38.76%

Dividend Payout Ratio

60.40%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

5.49%

ROE (avg)

5.07%

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

0.85

EV to EBIT

26.82

EV to EBITDA

20.21

EV to Capital Employed

0.95

EV to Sales

5.09

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

3.55%

ROE (Latest)

5.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 37,265 MM

NET PROFIT(9M)

Higher at JPY 16,982.06 MM

CASH AND EQV(HY)

Highest at JPY 165,128 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 8.54 times

DEBTORS TURNOVER RATIO(HY)

Highest at 16.9 times

NET SALES(Q)

Highest at JPY 75,083 MM

OPERATING PROFIT(Q)

Highest at JPY 27,652 MM

OPERATING PROFIT MARGIN(Q)

Highest at 36.83 %

PRE-TAX PROFIT(Q)

Highest at JPY 17,100 MM

-13What is not working for the Company

INTEREST(HY)

At JPY 5,014 MM has Grown at 1,185.64%

NET PROFIT(HY)

At JPY 8,805.35 MM has Grown at -41.15%

ROCE(HY)

Lowest at 3.77%

RAW MATERIAL COST(Y)

Grown by 11.7% (YoY

Here's what is working for Heiwa Corp.

Operating Cash Flow

Highest at JPY 37,265 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

At JPY 75,083 MM has Grown at 59.78%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 75,083 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 27,652 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 36.83 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 17,100 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 165,128 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 8.54 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 16.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 7,844 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 Heiwa Corp.

Interest

At JPY 5,014 MM has Grown at 1,185.64%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 8,805.35 MM has Grown at -41.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 11.7% (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