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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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HotLand Co., Ltd.

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KFC Holdings Japan Ltd.

Why is HotLand Co., Ltd. ?

High Management Efficiency with a high ROCE of 14.46%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 39.46

Poor long term growth as Net Sales has grown by an annual rate of 12.18% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 106.33 MM has Grown at 104.09%
NET PROFIT(HY) At JPY 912.04 MM has Grown at -39.09%
ROCE(HY) Lowest at 5.13%

With ROCE of 9.98%, it has a very expensive valuation with a 2.78 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 -24.23%, its profits have fallen by -59.9%

Below par performance in long term as well as near term

Along with generating -24.23% 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 hold?

Overall Portfolio exposure to HotLand Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is HotLand Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

HotLand Co., Ltd.

-23.91%

-1.78

20.51%

Japan Nikkei 225

69.64%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.18%

EBIT Growth (5y)

9.86%

EBIT to Interest (avg)

39.46

Debt to EBITDA (avg)

0.68

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

2.33

Tax Ratio

19.31%

Dividend Payout Ratio

68.18%

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

3.80

EV to EBIT

27.83

EV to EBITDA

13.18

EV to Capital Employed

2.78

EV to Sales

0.97

PEG Ratio

Dividend Yield

ROCE (Latest)

9.98%

ROE (Latest)

9.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.24% (YoY

CASH AND EQV(HY)

Highest at JPY 11,493.29 MM

NET SALES(Q)

Highest at JPY 13,800.21 MM

OPERATING PROFIT(Q)

Highest at JPY 1,252.67 MM

PRE-TAX PROFIT(Q)

Highest at JPY 915.33 MM

NET PROFIT(Q)

Highest at JPY 540.53 MM

EPS(Q)

Highest at JPY 24.47

-14What is not working for the Company

INTEREST(HY)

At JPY 106.33 MM has Grown at 104.09%

NET PROFIT(HY)

At JPY 912.04 MM has Grown at -39.09%

ROCE(HY)

Lowest at 5.13%

DEBT-EQUITY RATIO (HY)

Highest at 53.52 %

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

Net Sales

Highest at JPY 13,800.21 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,252.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 915.33 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 915.33 MM has Grown at 77.04%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 540.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 540.53 MM has Grown at 67.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 24.47

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 11,493.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.24% (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 HotLand Co., Ltd.

Interest

At JPY 106.33 MM has Grown at 104.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 53.52 % and Grown

In each half year 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