HEIWADO CO., LTD. (8276) 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

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HEIWADO CO., LTD.

Lawson, Inc.

Why is HEIWADO CO., LTD. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.51% and Operating profit at 5.01% over the last 5 years

DEBTORS TURNOVER RATIO(HY) Lowest at 36.61 times
INTEREST COVERAGE RATIO(Q) Lowest at 16,365.62
DEBT-EQUITY RATIO (HY) Highest at -1.41 %

Underperformed the market in the last 1 year

The stock has generated a return of 14.39% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How 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%

1.14

21.95%

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)

0.51%

EBIT Growth (5y)

5.01%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

2.08

Tax Ratio

28.66%

Dividend Payout Ratio

30.13%

Pledged Shares

Institutional Holding

ROCE (avg)

7.69%

ROE (avg)

5.54%

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

0.74

EV to EBIT

10.06

EV to EBITDA

5.06

EV to Capital Employed

0.73

EV to Sales

0.30

PEG Ratio

0.47

Dividend Yield

0.04%

ROCE (Latest)

7.28%

ROE (Latest)

5.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 11,955 MM

RAW MATERIAL COST(Y)

Fallen by 0.75% (YoY

-23What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 36.61 times

INTEREST COVERAGE RATIO(Q)

Lowest at 16,365.62

DEBT-EQUITY RATIO (HY)

Highest at -1.41 %

INTEREST(Q)

Highest at JPY 32 MM

OPERATING PROFIT(Q)

Lowest at JPY 5,237 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.66 %

PRE-TAX PROFIT(Q)

Lowest at JPY 2,066 MM

NET PROFIT(Q)

Lowest at JPY 979.8 MM

EPS(Q)

Lowest at JPY 20.2

Here's what is working for HEIWADO CO., LTD.

Operating Cash Flow

Highest at JPY 11,955 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Raw Material Cost

Fallen by 0.75% (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 32 MM has Grown at 18.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 16,365.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 979.8 MM has Fallen at -52.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 36.61 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at JPY 32 MM

in the last five periods and Increased by 18.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 5,237 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 2,066 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 979.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 20.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -1.41 %

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