ScoreWhy is Heiwa Paper Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 2.85%
- The company has been able to generate a Return on Equity (avg) of 2.85% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.86
3
Poor long term growth as Net Sales has grown by an annual rate of 0.84% and Operating profit at 34.58% over the last 5 years
4
With a growth in Net Profit of 4.3%, the company declared Very Positive results in Mar 26
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- RAW MATERIAL COST(Y) Fallen by -1.2% (YoY)
- DEBT-EQUITY RATIO (HY) Lowest at -3.81 %
5
With ROE of 0.77%, it has a fair valuation with a 0.47 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 7.41%, its profits have fallen by -32.4%
- At the current price, the company has a high dividend yield of 0
6
Underperformed the market in the last 1 year
- The stock has generated a return of 7.41% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Heiwa Paper Co., Ltd. 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 Heiwa Paper Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Heiwa Paper Co., Ltd.
7.41%
0.44
13.92%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.84%
EBIT Growth (5y)
34.58%
EBIT to Interest (avg)
9.86
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
1.32
Tax Ratio
39.11%
Dividend Payout Ratio
97.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.41%
ROE (avg)
2.85%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
61
Industry P/E
Price to Book Value
0.47
EV to EBIT
57.34
EV to EBITDA
17.83
EV to Capital Employed
0.46
EV to Sales
0.29
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
0.80%
ROE (Latest)
0.77%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Bearish
Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -1.2% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -3.81 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.27 times
DEBTORS TURNOVER RATIO(HY)
Highest at 3.26 times
NET SALES(Q)
Highest at JPY 4,193.76 MM
OPERATING PROFIT(Q)
Highest at JPY 131.84 MM
OPERATING PROFIT MARGIN(Q)
Highest at 3.14 %
NET PROFIT(Q)
Highest at JPY 41.39 MM
-1What is not working for the Company
CASH AND EQV(HY)
Lowest at JPY 4,226.43 MM
Here's what is working for Heiwa Paper Co., Ltd.
Net Sales
Highest at JPY 4,193.76 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 131.84 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 3.14 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at JPY 41.39 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Debt-Equity Ratio
Lowest at -3.81 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.27 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 3.26 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -1.2% (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 52.41 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 Paper Co., Ltd.
Cash and Eqv
Lowest at JPY 4,226.43 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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