Hokuyu Lucky Co., Ltd. (2747) 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

Ocean System Corp.

Foodison, Inc.

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Tenmaya Store Co. Ltd.

SUPER VALUE CO., LTD.

Hokuyu Lucky Co., Ltd.

Plant Co., Ltd.

CVS Bay Area, Inc.

United & Collective Co., Ltd.

Olympic Group Corp.

Why is Hokuyu Lucky Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.73%

The company has been able to generate a Return on Capital Employed (avg) of 3.73% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -1.98% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.32% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.98% over the last 5 years

Flat results in Nov 25

INTEREST(HY) At JPY 32.01 MM has Grown at 35.69%
PRE-TAX PROFIT(Q) At JPY -29.98 MM has Fallen at -149.08%
NET PROFIT(Q) At JPY -23.29 MM has Fallen at -159.2%

With ROCE of 2.26%, it has a expensive valuation with a 0.83 Enterprise value to Capital Employed

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 -0.17%, its profits have fallen by -68.3%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hokuyu Lucky Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hokuyu Lucky Co., Ltd.

-0.17%

-0.43

11.90%

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)

-1.98%

EBIT Growth (5y)

-9.48%

EBIT to Interest (avg)

10.87

Debt to EBITDA (avg)

6.31

Net Debt to Equity (avg)

0.89

Sales to Capital Employed (avg)

3.30

Tax Ratio

50.52%

Dividend Payout Ratio

44.36%

Pledged Shares

Institutional Holding

ROCE (avg)

3.34%

ROE (avg)

4.32%

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

0.67

EV to EBIT

36.59

EV to EBITDA

11.01

EV to Capital Employed

0.83

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

2.26%

ROE (Latest)

2.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Bearish

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

8What is working for the Company

NET PROFIT(HY)

At JPY 42.66 MM has Grown at 476.93%

RAW MATERIAL COST(Y)

Fallen by 0.67% (YoY

-13What is not working for the Company

INTEREST(HY)

At JPY 32.01 MM has Grown at 35.69%

PRE-TAX PROFIT(Q)

At JPY -29.98 MM has Fallen at -149.08%

NET PROFIT(Q)

At JPY -23.29 MM has Fallen at -159.2%

CASH AND EQV(HY)

Lowest at JPY 2,089.77 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.85 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 23.02 times

Here's what is working for Hokuyu Lucky Co., Ltd.

Raw Material Cost

Fallen by 0.67% (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 161.66 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 Hokuyu Lucky Co., Ltd.

Interest

At JPY 32.01 MM has Grown at 35.69%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -29.98 MM has Fallen at -149.08%

over average net sales of the previous four periods of JPY 61.08 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -23.29 MM has Fallen at -159.2%

over average net sales of the previous four periods of JPY 39.33 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 2,089.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 13.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 23.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio