HOUSE OF ROSE Co., Ltd. (7506) 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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HOUSE OF ROSE Co., Ltd.

Mandom Corp.

Why is HOUSE OF ROSE Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.54%

The company has been able to generate a Return on Equity (avg) of 3.54% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 46.84

Poor long term growth as Net Sales has grown by an annual rate of -1.78% and Operating profit at -9.47% over the last 5 years

With a growth in Operating Profit of 56.15%, the company declared Very Positive results in Dec 25

NET PROFIT(HY) Higher at JPY 192.49 MM
INVENTORY TURNOVER RATIO(HY) Highest at 2.09 times
RAW MATERIAL COST(Y) Fallen by 1.22% (YoY)

With ROE of 1.51%, it has a expensive valuation with a 1.14 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 -3.24%, its profits have fallen by -36.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.24% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HOUSE OF ROSE Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is HOUSE OF ROSE Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

HOUSE OF ROSE Co., Ltd.

-3.24%

-0.49

19.57%

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)

-1.78%

EBIT Growth (5y)

-9.47%

EBIT to Interest (avg)

46.84

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

2.09

Tax Ratio

62.27%

Dividend Payout Ratio

147.63%

Pledged Shares

Institutional Holding

ROCE (avg)

7.19%

ROE (avg)

3.54%

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

1.14

EV to EBIT

28.19

EV to EBITDA

17.98

EV to Capital Employed

1.29

EV to Sales

0.30

PEG Ratio

Dividend Yield

ROCE (Latest)

4.58%

ROE (Latest)

1.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

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

10What is working for the Company

NET PROFIT(HY)

Higher at JPY 192.49 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.09 times

RAW MATERIAL COST(Y)

Fallen by 1.22% (YoY

OPERATING PROFIT(Q)

Highest at JPY 158.56 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.25 %

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 5,227.75 MM

DEBT-EQUITY RATIO (HY)

Highest at -43.99 %

Here's what is working for HOUSE OF ROSE Co., Ltd.

Net Profit

At JPY 192.49 MM has Grown at 120.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Higher at JPY 192.49 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 2.09 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Profit

Highest at JPY 158.56 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 5.25 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by 1.22% (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 35.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 35.1 MM has Grown at 149.37%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for HOUSE OF ROSE Co., Ltd.

Cash and Eqv

Lowest at JPY 5,227.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -43.99 %

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