Hokuryo Co., Ltd. (1384) 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

Hokuryo Co., Ltd.

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Why is Hokuryo Co., Ltd. ?

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

Low Debt Company with Strong Long Term Fundamental Strength

With a growth in Net Profit of 18.61%, the company declared Outstanding results in Dec 25

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 22.38%
RAW MATERIAL COST(Y) Fallen by -30.26% (YoY)
CASH AND EQV(HY) Highest at JPY 11,334 MM

With ROE of 9.77%, it has a very attractive valuation with a 0.87 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 95.31%, its profits have fallen by -10.3%

Market Beating performance in long term as well as near term

Along with generating 95.31% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Hokuryo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

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

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

Is Hokuryo Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Hokuryo Co., Ltd.

95.31%

4.76

41.87%

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)

7.65%

EBIT Growth (5y)

68.18%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

1.32

Tax Ratio

29.16%

Dividend Payout Ratio

27.15%

Pledged Shares

Institutional Holding

ROCE (avg)

12.27%

ROE (avg)

7.75%

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

0.87

EV to EBIT

5.07

EV to EBITDA

3.17

EV to Capital Employed

0.84

EV to Sales

0.49

PEG Ratio

Dividend Yield

ROCE (Latest)

16.50%

ROE (Latest)

9.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

23What is working for the Company

ROCE(HY)

Highest at 22.38%

RAW MATERIAL COST(Y)

Fallen by -30.26% (YoY

CASH AND EQV(HY)

Highest at JPY 11,334 MM

DEBT-EQUITY RATIO (HY)

Lowest at -27.88 %

NET SALES(Q)

Highest at JPY 5,986 MM

OPERATING PROFIT(Q)

Highest at JPY 1,749 MM

OPERATING PROFIT MARGIN(Q)

Highest at 29.22 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,420 MM

NET PROFIT(Q)

Highest at JPY 983.15 MM

EPS(Q)

Highest at JPY 116.8

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 42.05 times

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

Net Sales

Highest at JPY 5,986 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,749 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 29.22 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,420 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 983.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 116.8

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 11,334 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -27.88 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -30.26% (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 Hokuryo Co., Ltd.

Inventory Turnover Ratio

Lowest at 42.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio