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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

mbs, Inc. (Japan)

EPCO Co., Ltd.

Arr Planner Co., Ltd.

HouseFreedom Co., Ltd.

CANDEAL Co., Ltd.

Agratio urban design, Inc.

Sanyo Homes Corp.

DAIEISANGYO Co., Ltd.

Freesia Macross Corp.

Tsuchiya Holdings 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%

INTEREST(Q) At JPY 45.85 MM has Grown at 17.8%
NET SALES(Q) Fallen at -12.58%
PRE-TAX PROFIT(Q) Fallen at -30.3%

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 14.81%, 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 14.81% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

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)

4.24

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

8What is working for the Company

ROCE(HY)

Highest at 15.3%

RAW MATERIAL COST(Y)

Fallen by -16.58% (YoY

NET PROFIT(9M)

Higher at JPY 457.74 MM

CASH AND EQV(HY)

Highest at JPY 7,717.99 MM

-13What is not working for the Company

INTEREST(Q)

At JPY 45.85 MM has Grown at 17.8%

NET SALES(Q)

Fallen at -12.58%

PRE-TAX PROFIT(Q)

Fallen at -30.3%

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

Net Profit

At JPY 457.74 MM has Grown at 123.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 7,717.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Net Profit

Higher at JPY 457.74 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -16.58% (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 34.13 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 HouseFreedom Co., Ltd.

Interest

At JPY 45.85 MM has Grown at 17.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Fallen at -12.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 45.85 MM

in the last five periods and Increased by 17.8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -30.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Non Operating Income

Highest at JPY 0.04 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income