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. ?

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

Healthy long term growth as Net Sales has grown by an annual rate of 9.75%

With a growth in Operating Profit of 24.75%, the company declared Outstanding results in Nov 25

ROCE(HY) Highest at 11.4%
RAW MATERIAL COST(Y) Fallen by -3.41% (YoY)
NET SALES(Q) Highest at JPY 3,958.2 MM

With ROE of 7.47%, it has a expensive valuation with a 1.38 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 11.38%, its profits have fallen by -26.7%

Real-Time Research Report

Verdict Report

How much should you buy?

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.

11.38%

0.17

22.00%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.75%

EBIT Growth (5y)

72.43%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

1.63

Tax Ratio

27.01%

Dividend Payout Ratio

46.60%

Pledged Shares

Institutional Holding

ROCE (avg)

19.95%

ROE (avg)

8.25%

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

1.38

EV to EBIT

9.05

EV to EBITDA

6.02

EV to Capital Employed

1.79

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

19.82%

ROE (Latest)

7.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

19What is working for the Company

ROCE(HY)

Highest at 11.4%

RAW MATERIAL COST(Y)

Fallen by -3.41% (YoY

NET SALES(Q)

Highest at JPY 3,958.2 MM

OPERATING PROFIT(Q)

Highest at JPY 1,185.4 MM

OPERATING PROFIT MARGIN(Q)

Highest at 29.95 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,105.41 MM

NET PROFIT(Q)

Highest at JPY 765.01 MM

EPS(Q)

Highest at JPY 329.55

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 2,876.09 MM

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

Net Sales

Highest at JPY 3,958.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 3,958.2 MM has Grown at 18.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,185.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 29.95 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,105.41 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 765.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 329.55

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -3.41% (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 90.65 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.

Cash and Eqv

Lowest at JPY 2,876.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents