ScoreWhy is HEIWADO CO., LTD. ?
1
Poor Management Efficiency with a low ROE of 5.75%
- The company has been able to generate a Return on Equity (avg) of 5.75% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a -1.06% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 5.75% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 0.75% and Operating profit at -1.06% over the last 5 years
4
The company has declared Negative results for the last 3 consecutive quarters
- INTEREST(HY) At JPY 85 MM has Grown at 80.85%
- DEBTORS TURNOVER RATIO(HY) Lowest at 36.17 times
- INTEREST COVERAGE RATIO(Q) Lowest at 14,254.76
5
With ROE of 5.33%, it has a very expensive valuation with a 0.66 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 -11.84%, its profits have fallen by -4.7%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is HEIWADO CO., LTD. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
HEIWADO CO., LTD.
-100.0%
0.70
22.96%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.75%
EBIT Growth (5y)
-1.06%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
2.11
Tax Ratio
33.62%
Dividend Payout Ratio
34.87%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.27%
ROE (avg)
5.75%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.66
EV to EBIT
9.60
EV to EBITDA
4.70
EV to Capital Employed
0.66
EV to Sales
0.28
PEG Ratio
NA
Dividend Yield
0.04%
ROCE (Latest)
6.87%
ROE (Latest)
5.33%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 14,772 MM
RAW MATERIAL COST(Y)
Fallen by 0.53% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 14.63 times
-15What is not working for the Company
INTEREST(HY)
At JPY 85 MM has Grown at 80.85%
DEBTORS TURNOVER RATIO(HY)
Lowest at 36.17 times
INTEREST COVERAGE RATIO(Q)
Lowest at 14,254.76
CASH AND EQV(HY)
Lowest at JPY 43,181 MM
DEBT-EQUITY RATIO
(HY)
Highest at 0.49 %
NET PROFIT(Q)
Fallen at -45.59%
Here's what is working for HEIWADO CO., LTD.
Operating Cash Flow
Highest at JPY 14,772 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)
Inventory Turnover Ratio
Highest at 14.63 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.53% (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
Here's what is not working for HEIWADO CO., LTD.
Interest
At JPY 85 MM has Grown at 80.85%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 14,254.76
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debtors Turnover Ratio
Lowest at 36.17 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Net Profit
Fallen at -45.59%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Cash and Eqv
Lowest at JPY 43,181 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 0.49 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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