Hub Co., Ltd. (3030) 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

Hub Co., Ltd.

Kushikatsu Tanaka Holdings Co.

Hurxley Corp.

Tokyo Kaikan Co., Ltd.

Towa Food Service Co., Ltd.

Satoh & Co., Ltd.

RIDE ON EXPRESS HOLDINGS Co., Ltd.

ANRAKUTEI Co., Ltd.

WDI Corp.

Balnibarbi Co., Ltd.

Yakiniku Sakai Holdings, Inc.

Why is Hub Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.39%

The company has been able to generate a Return on Equity (avg) of 6.39% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.57% and Operating profit at 20.23% over the last 5 years

Flat results in Feb 26

INTEREST(HY) At JPY 12.2 MM has Grown at 9.13%
DEBT-EQUITY RATIO (HY) Highest at -39.22 %
PRE-TAX PROFIT(Q) At JPY 91.62 MM has Fallen at -25.5%

With ROE of 16.94%, it has a fair valuation with a 3.52 Price to Book Value

Over the past year, while the stock has generated a return of 25.60%, its profits have risen by 14.4% ; the PEG ratio of the company is 1.4

Underperformed the market in the last 1 year

The stock has generated a return of 25.60% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hub Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is Hub Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hub Co., Ltd.

23.1%

0.30

26.03%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.57%

EBIT Growth (5y)

20.23%

EBIT to Interest (avg)

-32.04

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

2.35

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

20.63%

Pledged Shares

Institutional Holding

ROCE (avg)

9.87%

ROE (avg)

6.39%

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

3.52

EV to EBIT

19.86

EV to EBITDA

12.90

EV to Capital Employed

5.25

EV to Sales

0.90

PEG Ratio

1.44

Dividend Yield

ROCE (Latest)

26.45%

ROE (Latest)

16.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

6What is working for the Company

ROCE(HY)

Highest at 19.35%

RAW MATERIAL COST(Y)

Fallen by 0.52% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 42.54 times

NET PROFIT(Q)

Highest at JPY 233.64 MM

-7What is not working for the Company

INTEREST(HY)

At JPY 12.2 MM has Grown at 9.13%

DEBT-EQUITY RATIO (HY)

Highest at -39.22 %

PRE-TAX PROFIT(Q)

At JPY 91.62 MM has Fallen at -25.5%

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

Net Profit

Highest at JPY 233.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 233.64 MM has Grown at 71.99%

over average net sales of the previous four periods of JPY 135.85 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 42.54 times

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 0.52% (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 81.29 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 Hub Co., Ltd.

Interest

At JPY 12.2 MM has Grown at 9.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -39.22 % and Grown

In each half year 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

Pre-Tax Profit

At JPY 91.62 MM has Fallen at -25.5%

over average net sales of the previous four periods of JPY 122.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)