Hobonichi Co., Ltd. (3560) 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

Hobonichi Co., Ltd.

Chiikishinbunsha Co., Ltd.

Why is Hobonichi Co., Ltd. ?

Poor Management Efficiency with a low ROE of 7.74%

The company has been able to generate a Return on Equity (avg) of 7.74% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 35.62% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 7.74% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 35.62% of over the last 5 years

The company has declared negative results in May'2026 after 2 consecutive positive quarters

RAW MATERIAL COST(Y) Grown by 11.19% (YoY)
NET SALES(Q) Lowest at JPY 963.49 MM
OPERATING PROFIT(Q) Lowest at JPY -441.86 MM

With ROE of 15.52%, it has a attractive valuation with a 1.61 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 27.68%, its profits have risen by 141.1% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hobonichi Co., Ltd. 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 Hobonichi Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hobonichi Co., Ltd.

27.68%

0.85

32.99%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.12%

EBIT Growth (5y)

35.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

1.66

Tax Ratio

30.43%

Dividend Payout Ratio

46.60%

Pledged Shares

Institutional Holding

ROCE (avg)

26.48%

ROE (avg)

7.74%

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

1.61

EV to EBIT

4.92

EV to EBITDA

3.91

EV to Capital Employed

2.27

EV to Sales

0.65

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

46.12%

ROE (Latest)

15.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

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

9What is working for the Company

NET PROFIT(HY)

At JPY 73.43 MM has Grown at 177.84%

ROCE(HY)

Highest at 14.54%

CASH AND EQV(HY)

Highest at JPY 5,724.34 MM

-15What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 11.19% (YoY

NET SALES(Q)

Lowest at JPY 963.49 MM

OPERATING PROFIT(Q)

Lowest at JPY -441.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -45.86 %

PRE-TAX PROFIT(Q)

Lowest at JPY -542.34 MM

NET PROFIT(Q)

Lowest at JPY -372.02 MM

EPS(Q)

Lowest at JPY -160.27

Here's what is working for Hobonichi Co., Ltd.

Cash and Eqv

Highest at JPY 5,724.34 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 103.05 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Hobonichi Co., Ltd.

Pre-Tax Profit

At JPY -542.34 MM has Fallen at -79.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -372.02 MM has Fallen at -76.13%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 963.49 MM has Fallen at -14.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 963.49 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -441.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -45.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -542.34 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 -372.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -160.27

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 11.19% (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