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 10.68%

With a growth in Net Profit of 281.12%, the company declared Outstanding results in Feb 26

The company has declared positive results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At JPY 643.53 MM has Grown at 277.87%
NET PROFIT(Q) At JPY 445.45 MM has Grown at 281.12%
ROCE(HY) Highest at 16.68%

With ROE of 10.94%, it has a very attractive valuation with a 1.47 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 31.64%, its profits have risen by 17.9% ; the PEG ratio of the company is 0.8

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.

31.64%

0.64

30.93%

Japan Nikkei 225

69.64%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.68%

EBIT Growth (5y)

82.57%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

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)

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

1.47

EV to EBIT

6.87

EV to EBITDA

5.03

EV to Capital Employed

1.77

EV to Sales

0.64

PEG Ratio

0.75

Dividend Yield

ROCE (Latest)

25.74%

ROE (Latest)

10.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

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

26What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 643.53 MM has Grown at 277.87%

NET PROFIT(Q)

At JPY 445.45 MM has Grown at 281.12%

ROCE(HY)

Highest at 16.68%

RAW MATERIAL COST(Y)

Fallen by -13.87% (YoY

CASH AND EQV(HY)

Highest at JPY 5,214.14 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.8 times

DEBTORS TURNOVER RATIO(HY)

Highest at 17.06 times

NET SALES(Q)

At JPY 3,107.05 MM has Grown at 29.06%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Pre-Tax Profit

At JPY 643.53 MM has Grown at 277.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 445.45 MM has Grown at 281.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 3,107.05 MM has Grown at 29.06%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 5,214.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.8 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 17.06 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -13.87% (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 99.56 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)