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.

Arr Planner Co., Ltd.

EPCO Co., Ltd.

CANDEAL Co., Ltd.

mbs, Inc. (Japan)

Agratio urban design, Inc.

Freesia Macross Corp.

Sanyo Homes Corp.

Tsuchiya Holdings Co., Ltd.

DAIEISANGYO Co., Ltd.

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%

Positive results in Mar 26

ROCE(HY) Highest at 21.67%
PRE-TAX PROFIT(Q) At JPY 53.02 MM has Grown at 193.11%
NET PROFIT(Q) At JPY 32.33 MM has Grown at 167.23%

With ROE of 17.10%, it has a very attractive valuation with a 1.10 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 19.01%, its profits have risen by 34.9% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 19.01% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 72.95%

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)

6.83%

EBIT Growth (5y)

2.99%

EBIT to Interest (avg)

6.89

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

4.38

Tax Ratio

34.76%

Dividend Payout Ratio

32.00%

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

1.10

EV to EBIT

-0.51

EV to EBITDA

-0.46

EV to Capital Employed

0.60

EV to Sales

-0.03

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

-118.49%

ROE (Latest)

17.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly 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

16What is working for the Company

ROCE(HY)

Highest at 21.67%

PRE-TAX PROFIT(Q)

At JPY 53.02 MM has Grown at 193.11%

NET PROFIT(Q)

At JPY 32.33 MM has Grown at 167.23%

RAW MATERIAL COST(Y)

Fallen by -13.2% (YoY

CASH AND EQV(HY)

Highest at JPY 9,009.18 MM

DEBT-EQUITY RATIO (HY)

Lowest at 239.23 %

-13What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 986.95 times

NET SALES(Q)

Lowest at JPY 2,741.33 MM

INTEREST(Q)

Highest at JPY 51.45 MM

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

Pre-Tax Profit

At JPY 53.02 MM has Grown at 193.11%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 32.33 MM has Grown at 167.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 9,009.18 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 239.23 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -13.2% (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 HouseFreedom Co., Ltd.

Net Sales

At JPY 2,741.33 MM has Fallen at -12.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 2,741.33 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 51.45 MM

in the last five periods and Increased by 9.15% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 986.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.19 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income