I-ne Co. Ltd. (4933) 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

Noevir Holdings Co., Ltd.

Lion Corp.

MTG Co., Ltd.

Rohto Pharmaceutical Co., Ltd.

I-ne Co. Ltd.

Pigeon Corp.

Pola Orbis Holdings, Inc.

KOSÉ Corp.

Milbon Co., Ltd.

Mandom Corp.

FANCL Corp.

Why is I-ne Co. Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 19.85%

Healthy long term growth as Net Sales has grown by an annual rate of 17.05% and Operating profit at 23.11%
Company has very low debt and has enough cash to service the debt requirements
INTEREST COVERAGE RATIO(Q) Lowest at 5,323.53
INVENTORY TURNOVER RATIO(HY) Lowest at 5.12%
INTEREST(Q) Highest at JPY 17 MM

With ROE of 19.00%, it has a expensive valuation with a 1.84 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 -31.80%, its profits have fallen by -23%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.80% 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 I-ne 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 I-ne Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

I-ne Co. Ltd.

-32.38%

-0.39

46.28%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.05%

EBIT Growth (5y)

23.11%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

2.58

Tax Ratio

34.35%

Dividend Payout Ratio

7.78%

Pledged Shares

Institutional Holding

ROCE (avg)

43.89%

ROE (avg)

19.85%

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

1.84

EV to EBIT

6.68

EV to EBITDA

5.74

EV to Capital Employed

1.76

EV to Sales

0.69

PEG Ratio

Dividend Yield

ROCE (Latest)

26.38%

ROE (Latest)

19.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.32% (YoY

NET PROFIT(9M)

Higher at JPY 2,553.78 MM

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,323.53

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.12%

INTEREST(Q)

Highest at JPY 17 MM

OPERATING PROFIT(Q)

Lowest at JPY 905 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.08 %

PRE-TAX PROFIT(Q)

Lowest at JPY 745 MM

NET PROFIT(Q)

At JPY 550 MM has Fallen at -31.23%

Here's what is working for I-ne Co. Ltd.

Raw Material Cost

Fallen by -10.32% (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 I-ne Co. Ltd.

Interest

At JPY 17 MM has Grown at 13.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 5,323.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 17 MM

in the last five periods and Increased by 13.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 905 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 745 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 745 MM has Fallen at -37.04%

over average net sales of the previous four periods of JPY 1,183.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 550 MM has Fallen at -31.23%

over average net sales of the previous four periods of JPY 799.78 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 5.12%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio