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

Bridge International Corp.

Billing System Corp.

CRESTEC Inc.

Peers Co. Ltd.

f-code, Inc.

MRT, Inc.

Honyaku Center, Inc.

Zenken Corp.

Faith, Inc.

ItoKuro, Inc.

Original Engineering Consultants Co., Ltd.

Why is Honyaku Center, Inc. ?

High Management Efficiency with a high ROE of 9.99%

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

Poor long term growth as Net Sales has grown by an annual rate of -0.60% and Operating profit at 1.80% over the last 5 years

Negative results in Dec 25

INTEREST(9M) At JPY 0.12 MM has Grown at inf%
ROCE(HY) Lowest at 9.8%
DEBT-EQUITY RATIO (HY) Highest at -70.4 %

With ROE of 9.18%, 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 0.87%, its profits have fallen by -5.8%

Underperformed the market in the last 1 year

The stock has generated a return of 0.87% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

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.

0.87%

-0.28

21.13%

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)

-0.60%

EBIT Growth (5y)

1.80%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.71

Sales to Capital Employed (avg)

1.80

Tax Ratio

33.41%

Dividend Payout Ratio

34.69%

Pledged Shares

Institutional Holding

ROCE (avg)

52.64%

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

0.87

EV to EBIT

1.17

EV to EBITDA

1.11

EV to Capital Employed

0.54

EV to Sales

0.09

PEG Ratio

Dividend Yield

ROCE (Latest)

45.96%

ROE (Latest)

9.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly 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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.62% (YoY

CASH AND EQV(HY)

Highest at JPY 9,787.29 MM

-11What is not working for the Company

INTEREST(9M)

At JPY 0.12 MM has Grown at inf%

ROCE(HY)

Lowest at 9.8%

DEBT-EQUITY RATIO (HY)

Highest at -70.4 %

PRE-TAX PROFIT(Q)

Fallen at -33.25%

NET PROFIT(Q)

Fallen at -43.07%

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

Cash and Eqv

Highest at JPY 9,787.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.62% (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 Honyaku Center, Inc.

Interest

At JPY 0.12 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

Fallen at -33.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -43.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -70.4 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio