Honyaku Center, Inc. (2483) 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

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MRT, Inc.

CRESTEC Inc.

f-code, Inc.

Honyaku Center, Inc.

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Zenken Corp.

ItoKuro, Inc.

Faith, Inc.

Why is Honyaku Center, Inc. ?

Weak Long Term Fundamental Strength with a 14.77% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 1.85% and Operating profit at 14.77% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At JPY 0.19 MM has Grown at inf%
ROCE(HY) Lowest at 5.38%
NET SALES(Q) Lowest at JPY 2,454.02 MM

With ROE of 7.98%, it has a very attractive valuation with a 1.00 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 13.41%, its profits have fallen by -19.2%

Underperformed the market in the last 1 year

The stock has generated a return of 13.41% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Honyaku Center, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Honyaku Center, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Honyaku Center, Inc.

-100.0%

0.47

29.27%

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)

1.85%

EBIT Growth (5y)

14.77%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.71

Sales to Capital Employed (avg)

1.72

Tax Ratio

35.03%

Dividend Payout Ratio

101.60%

Pledged Shares

Institutional Holding

ROCE (avg)

53.54%

ROE (avg)

9.99%

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

1.00

EV to EBIT

2.40

EV to EBITDA

2.24

EV to Capital Employed

0.99

EV to Sales

0.18

PEG Ratio

Dividend Yield

ROCE (Latest)

41.01%

ROE (Latest)

7.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 9,727.44 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 32.87 times

-24What is not working for the Company

INTEREST(9M)

At JPY 0.19 MM has Grown at inf%

ROCE(HY)

Lowest at 5.38%

NET SALES(Q)

Lowest at JPY 2,454.02 MM

OPERATING PROFIT(Q)

Lowest at JPY 70.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.89 %

PRE-TAX PROFIT(Q)

Lowest at JPY 67.28 MM

NET PROFIT(Q)

Lowest at JPY 36.93 MM

EPS(Q)

Lowest at JPY 11

Here's what is working for Honyaku Center, Inc.

Cash and Eqv

Highest at JPY 9,727.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 32.87 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Honyaku Center, Inc.

Interest

At JPY 0.19 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 67.28 MM has Fallen at -69.26%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 36.93 MM has Fallen at -74.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 2,454.02 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 70.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 2.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 67.28 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 36.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)