ScoreWhy is Heiwa Corp. ?
1
Weak Long Term Fundamental Strength with a 17.05% CAGR growth in Net Sales over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 5.07% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 17.05% over the last 5 years
3
Positive results in Jun 26
- NET PROFIT(HY) At JPY 3,228.81 MM has Grown at 371.56%
- OPERATING CASH FLOW(Y) Highest at JPY 40,723 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 9.24 times
4
With ROCE of 5.31%, it has a very attractive valuation with a 0.94 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 -1.26%, its profits have fallen by -63%
- At the current price, the company has a high dividend yield of 0
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -1.26% 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 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.
-1.94%
0.31
15.95%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.05%
EBIT Growth (5y)
74.31%
EBIT to Interest (avg)
34.91
Debt to EBITDA (avg)
5.34
Net Debt to Equity (avg)
2.21
Sales to Capital Employed (avg)
0.32
Tax Ratio
64.97%
Dividend Payout Ratio
67.61%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
6.22%
ROE (avg)
5.07%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
0.81
EV to EBIT
17.69
EV to EBITDA
11.04
EV to Capital Employed
0.94
EV to Sales
3.17
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.31%
ROE (Latest)
3.75%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
NET PROFIT(HY)
At JPY 3,228.81 MM has Grown at 371.56%
OPERATING CASH FLOW(Y)
Highest at JPY 40,723 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 9.24 times
NET SALES(Q)
Highest at JPY 77,764 MM
-10What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 7.88% (YoY
INTEREST(Q)
Highest at JPY 3,050 MM
Here's what is working for Heiwa Corp.
Net Profit
At JPY 3,228.81 MM has Grown at 371.56%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (JPY MM)
Operating Cash Flow
Highest at JPY 40,723 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Sales
Highest at JPY 77,764 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Inventory Turnover Ratio
Highest at 9.24 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at JPY 8,137 MM
in the last five periodsMOJO 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
Highest at JPY 3,050 MM
in the last five periods and Increased by 6.83% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Raw Material Cost
Grown by 7.88% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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