HIP Corp. (2136) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

GMO Research & AI, Inc.

Hakuten Corp.

PRAP Japan, Inc.

Kyodo Public Relations Co., Ltd.

HIP Corp.

Gifu Landscape Architect Co., Ltd.

Global Information, Inc.

SYS Holdings Co., Ltd. (Japan)

Prored Partners Co., Ltd.

GMO TECH, Inc.

Karadanote, Inc.

Why is HIP Corp. ?

High Management Efficiency with a high ROE of 10.60%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 1.88% over the last 5 years

Flat results in Jun 25

INTEREST(9M) At JPY 3.36 MM has Grown at 6.16%

With ROE of 10.39%, it has a very attractive valuation with a 1.17 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 42.32%, its profits have fallen by -4.5%

Market Beating Performance

The stock has generated a return of 42.32% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HIP Corp. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is HIP Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

HIP Corp.

42.32%

1.67

27.89%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.88%

EBIT Growth (5y)

0.18%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.76

Sales to Capital Employed (avg)

1.34

Tax Ratio

26.71%

Dividend Payout Ratio

51.07%

Pledged Shares

Institutional Holding

ROCE (avg)

60.72%

ROE (avg)

10.60%

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

1.17

EV to EBIT

2.86

EV to EBITDA

2.73

EV to Capital Employed

1.70

EV to Sales

0.27

PEG Ratio

Dividend Yield

ROCE (Latest)

59.69%

ROE (Latest)

10.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

2What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 18,942.29

-2What is not working for the Company

INTEREST(9M)

At JPY 3.36 MM has Grown at 6.16%

Here's what is working for HIP Corp.

Interest Coverage Ratio

Highest at 18,942.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Here's what is not working for HIP Corp.

Interest

At JPY 3.36 MM has Grown at 6.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)