HotLand Co., Ltd. (3196) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Genki Sushi Co., Ltd.

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Watami Co., Ltd.

Bronco Billy Co., Ltd.

Kappa Create Co., Ltd.

Ringer Hut Co., Ltd.

HotLand Co., Ltd.

SFP Holdings Co. Ltd.

Fujio Food Group, Inc.

KFC Holdings Japan Ltd.

Why is HotLand Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.11% over the last 5 years

The company declared negative results in Mar'25 after flat results in Dec'24

INTEREST(HY) At JPY 66.83 MM has Grown at 162.37%
PRE-TAX PROFIT(Q) At JPY 124.07 MM has Fallen at -85.34%
ROCE(HY) Lowest at 5.09%

With ROCE of 14.08%, it has a expensive valuation with a 3.21 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 -6.18%, its profits have fallen by -10.1%

Below par performance in long term as well as near term

Along with generating -6.18% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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 Leisure Services)

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

Is HotLand Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

HotLand Co., Ltd.

-6.18%

-0.95

18.90%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.11%

EBIT Growth (5y)

6.61%

EBIT to Interest (avg)

39.46

Debt to EBITDA (avg)

0.68

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

2.37

Tax Ratio

19.31%

Dividend Payout Ratio

14.94%

Pledged Shares

Institutional Holding

ROCE (avg)

14.46%

ROE (avg)

18.25%

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

3.94

EV to EBIT

22.79

EV to EBITDA

13.18

EV to Capital Employed

3.21

EV to Sales

1.05

PEG Ratio

Dividend Yield

ROCE (Latest)

14.08%

ROE (Latest)

17.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by 0.05% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 7.49%

-27What is not working for the Company

INTEREST(HY)

At JPY 66.83 MM has Grown at 162.37%

PRE-TAX PROFIT(Q)

At JPY 124.07 MM has Fallen at -85.34%

ROCE(HY)

Lowest at 5.09%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,407.78

DEBT-EQUITY RATIO (HY)

Highest at 43.86 %

OPERATING PROFIT(Q)

Lowest at JPY 787.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.59 %

NET PROFIT(Q)

Lowest at JPY -43.18 MM

EPS(Q)

Lowest at JPY -11.23

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

Inventory Turnover Ratio

Highest at 7.49%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.05% (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 478.32 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 HotLand Co., Ltd.

Interest

At JPY 66.83 MM has Grown at 162.37%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 124.07 MM has Fallen at -85.34%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -43.18 MM has Fallen at -108.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 2,407.78

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 787.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 6.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY -43.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -11.23

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 43.86 %

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