IKK Holdings, Inc. (2198) 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

JP Holdings, Inc.

Riso Kyoiku Co., Ltd.

Fast Fitness Japan, Inc.

IKK Holdings, Inc.

Step Co., Ltd.

KNT-CT Holdings Co. Ltd.

Waseda Academy Co., Ltd.

Gakken Holdings Co., Ltd.

Adventure, Inc.

Kanagawa Chuo Kotsu Co., Ltd.

Open Door, Inc.

Why is IKK Holdings, Inc. ?

High Management Efficiency with a high ROCE of 14.31%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 39.53

Poor long term growth as Net Sales has grown by an annual rate of 29.14% and Operating profit at 19.39% over the last 5 years

Flat results in Apr 26

INTEREST(Q) At JPY 4.74 MM has Grown at 15.42%
INTEREST COVERAGE RATIO(Q) Lowest at 8,628.49
OPERATING PROFIT(Q) Lowest at JPY 408.82 MM

With ROCE of 21.09%, it has a very attractive valuation with a 2.22 Enterprise value to Capital Employed

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 -11.83%, its profits have risen by 55.7% ; the PEG ratio of the company is 0.2

Below par performance in long term as well as near term

Along with generating -11.83% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to IKK Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

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

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

Is IKK Holdings, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

IKK Holdings, Inc.

-13.55%

-0.87

14.59%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.14%

EBIT Growth (5y)

19.39%

EBIT to Interest (avg)

39.53

Debt to EBITDA (avg)

0.47

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

1.65

Tax Ratio

32.86%

Dividend Payout Ratio

35.31%

Pledged Shares

Institutional Holding

ROCE (avg)

14.31%

ROE (avg)

9.94%

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

2.02

EV to EBIT

10.54

EV to EBITDA

6.86

EV to Capital Employed

2.22

EV to Sales

0.96

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

21.09%

ROE (Latest)

20.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

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

10What is working for the Company

NET PROFIT(HY)

At JPY 467.91 MM has Grown at 136.94%

RAW MATERIAL COST(Y)

Fallen by -0.23% (YoY

CASH AND EQV(HY)

Highest at JPY 8,990.02 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 74.94 times

-9What is not working for the Company

INTEREST(Q)

At JPY 4.74 MM has Grown at 15.42%

INTEREST COVERAGE RATIO(Q)

Lowest at 8,628.49

OPERATING PROFIT(Q)

Lowest at JPY 408.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.4 %

PRE-TAX PROFIT(Q)

Lowest at JPY 174.43 MM

NET PROFIT(Q)

Lowest at JPY 70.5 MM

EPS(Q)

Lowest at JPY 2.42

Here's what is working for IKK Holdings, Inc.

Cash and Eqv

Highest at JPY 8,990.02 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 74.94 times

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 -0.23% (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 IKK Holdings, Inc.

Interest

At JPY 4.74 MM has Grown at 15.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 8,628.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 408.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 174.43 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 70.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 2.42

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)