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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Ichibanya Co., Ltd.

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Why is Ichibanya Co., Ltd. ?

Weak Long Term Fundamental Strength with a 13.01% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 8.17% and Operating profit at 13.01% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

INTEREST(HY) At JPY 34 MM has Grown at 21.04%
ROCE(HY) Lowest at 7.48%
DEBT-EQUITY RATIO (HY) Highest at -31.02 %

With ROE of 9.64%, it has a very expensive valuation with a 4.39 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 -8.37%, its profits have fallen by -13%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.37% 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.

-8.37%

-1.18

17.07%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.17%

EBIT Growth (5y)

13.01%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

1.93

Tax Ratio

34.95%

Dividend Payout Ratio

99.67%

Pledged Shares

Institutional Holding

ROCE (avg)

25.62%

ROE (avg)

10.08%

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

4.39

EV to EBIT

27.37

EV to EBITDA

17.48

EV to Capital Employed

6.58

EV to Sales

1.97

PEG Ratio

Dividend Yield

ROCE (Latest)

24.06%

ROE (Latest)

9.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 24.71 times

RAW MATERIAL COST(Y)

Fallen by 1.14% (YoY

-13What is not working for the Company

INTEREST(HY)

At JPY 34 MM has Grown at 21.04%

ROCE(HY)

Lowest at 7.48%

DEBT-EQUITY RATIO (HY)

Highest at -31.02 %

CASH AND EQV(HY)

Lowest at JPY 24,424 MM

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

Inventory Turnover Ratio

Highest at 24.71 times 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

Raw Material Cost

Fallen by 1.14% (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 Ichibanya Co., Ltd.

Interest

At JPY 34 MM has Grown at 21.04%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -31.02 % 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

Cash and Eqv

Lowest at JPY 24,424 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents