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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

MTG Co., Ltd.

I-ne Co. Ltd.

HOUSE OF ROSE Co., Ltd.

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Cota Co., Ltd.

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Almado, Inc.

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

The company has declared positive results in Mar'2025 after 4 consecutive negative quarters

INVENTORY TURNOVER RATIO(HY) Highest at 2.06%
RAW MATERIAL COST(Y) Fallen by 0.7% (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 -4.58%, its profits have fallen by -36.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.58% 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.

-4.58%

-1.22

10.93%

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)

-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)

2.08

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

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.06%

RAW MATERIAL COST(Y)

Fallen by 0.7% (YoY

-18What is not working for the Company

ROCE(HY)

Lowest at -0.54%

NET SALES(Q)

Lowest at JPY 2,571.34 MM

OPERATING PROFIT(Q)

Lowest at JPY -239.9 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -9.33 %

PRE-TAX PROFIT(Q)

Lowest at JPY -257.8 MM

NET PROFIT(Q)

Lowest at JPY -239.77 MM

EPS(Q)

Lowest at JPY -50.99

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

Inventory Turnover Ratio

Highest at 2.06% 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

Raw Material Cost

Fallen by 0.7% (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 19.94 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 HOUSE OF ROSE Co., Ltd.

Pre-Tax Profit

At JPY -257.8 MM has Fallen at -79.79%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -239.77 MM has Fallen at -84.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 2,571.34 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -239.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -9.33 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -257.8 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 -239.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -50.99

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)