Ichibanya Co., Ltd. (7630) 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

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FOOD & LIFE COMPANIES LTD.

Yoshinoya Holdings Co., Ltd.

Ichibanya Co., Ltd.

ATOM Corp.

Why is Ichibanya Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 3.45% and Operating profit at -1.10% over the last 5 years

Negative results in May 25

CASH AND EQV(HY) Lowest at JPY 29,322.68 MM
DEBT-EQUITY RATIO (HY) Highest at -39.49 %
INTEREST(Q) Highest at JPY 17 MM

With ROE of 11.15%, it has a expensive valuation with a 4.50 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 -10.74%, its profits have risen by 14.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.74% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Ichibanya Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ichibanya Co., Ltd.

-10.74%

-1.34

15.34%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.45%

EBIT Growth (5y)

-1.10%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

1.78

Tax Ratio

32.50%

Dividend Payout Ratio

80.49%

Pledged Shares

Institutional Holding

ROCE (avg)

25.56%

ROE (avg)

9.48%

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

4.50

EV to EBIT

26.20

EV to EBITDA

18.68

EV to Capital Employed

7.61

EV to Sales

2.12

PEG Ratio

Dividend Yield

ROCE (Latest)

29.06%

ROE (Latest)

11.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

INVENTORY TURNOVER RATIO(HY)

Highest at 24.38%

RAW MATERIAL COST(Y)

Fallen by -0.44% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 15.95%

OPERATING PROFIT(Q)

Highest at JPY 2,688 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.07 %

-13What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 29,322.68 MM

DEBT-EQUITY RATIO (HY)

Highest at -39.49 %

INTEREST(Q)

Highest at JPY 17 MM

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

Inventory Turnover Ratio

Highest at 24.38% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Profit

Highest at JPY 2,688 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 17.07 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debtors Turnover Ratio

Highest at 15.95%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.44% (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 1,422 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 1,422 MM has Grown at 174.24%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 17 MM has Grown at 53.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 17 MM

in the last five periods and Increased by 53.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 29,322.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -39.49 %

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