HouseFreedom Co., Ltd. (8996) 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

HouseFreedom Co., Ltd.

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Agratio urban design, Inc.

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MELDIA Development & Construction Co., Ltd.

Why is HouseFreedom Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 13.50%

With a growth in Net Sales of 33.27%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 18.22%
CASH AND EQV(HY) Highest at JPY 8,787.08 MM
DEBT-EQUITY RATIO (HY) Lowest at 180.53 %

With ROE of 16.87%, it has a very attractive valuation with a 1.05 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 19.13%, its profits have risen by 165.8% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

The stock has generated a return of 19.13% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.30%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HouseFreedom Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.82%

EBIT Growth (5y)

12.11%

EBIT to Interest (avg)

6.89

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

4.28

Tax Ratio

34.76%

Dividend Payout Ratio

36.76%

Pledged Shares

Institutional Holding

ROCE (avg)

157.50%

ROE (avg)

13.50%

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

1.05

EV to EBIT

-0.39

EV to EBITDA

-0.35

EV to Capital Employed

0.69

EV to Sales

-0.02

PEG Ratio

0.04

Dividend Yield

ROCE (Latest)

-176.16%

ROE (Latest)

16.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

16What is working for the Company

ROCE(HY)

Highest at 18.22%

CASH AND EQV(HY)

Highest at JPY 8,787.08 MM

DEBT-EQUITY RATIO (HY)

Lowest at 180.53 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.52 times

DIVIDEND PER SHARE(HY)

Highest at JPY 1,417.82

NET SALES(Q)

Highest at JPY 6,479.03 MM

PRE-TAX PROFIT(Q)

Highest at JPY 741.82 MM

NET PROFIT(Q)

Highest at JPY 529.03 MM

EPS(Q)

Highest at JPY 138.01

-10What is not working for the Company

INTEREST(HY)

At JPY 97.08 MM has Grown at 40.11%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 39.85%

RAW MATERIAL COST(Y)

Grown by 11.82% (YoY

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

Net Sales

Highest at JPY 6,479.03 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 6,479.03 MM has Grown at 33.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 741.82 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 529.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 138.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 8,787.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 180.53 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.52 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 1,417.82

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for HouseFreedom Co., Ltd.

Interest

At JPY 97.08 MM has Grown at 40.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend Payout Ratio

Lowest at 39.85%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 11.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales