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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Waseda Academy Co., Ltd.

Fast Fitness Japan, Inc.

KNT-CT Holdings Co. Ltd.

JP Holdings, Inc.

Gakken Holdings Co., Ltd.

Step Co., Ltd.

IKK Holdings, Inc.

Kanagawa Chuo Kotsu Co., Ltd.

Riso Kyoiku Co., Ltd.

Adventure, Inc.

Open Door, Inc.

Why is IKK Holdings, Inc. ?

High Management Efficiency with a high ROCE of 13.13%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 31.12

Poor long term growth as Net Sales has grown by an annual rate of 2.62% and Operating profit at 3.57% over the last 5 years

The company has declared negative results in Jan'2025 after 3 consecutive positive quarters

PRE-TAX PROFIT(Q) At JPY 197.98 MM has Fallen at -61.94%
ROCE(HY) Lowest at 12.92%
INTEREST COVERAGE RATIO(Q) Lowest at 8,998.28

With ROCE of 25.10%, it has a very attractive valuation with a 2.53 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 4.59%, its profits have risen by 16.5% ; the PEG ratio of the company is 0.9

Underperformed the market in the last 1 year

The stock has generated a return of 4.59% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

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.

4.59%

-0.02

12.63%

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)

2.62%

EBIT Growth (5y)

3.57%

EBIT to Interest (avg)

39.53

Debt to EBITDA (avg)

0.47

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.61

Tax Ratio

32.86%

Dividend Payout Ratio

40.44%

Pledged Shares

Institutional Holding

ROCE (avg)

14.31%

ROE (avg)

8.90%

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

2.36

EV to EBIT

10.10

EV to EBITDA

6.65

EV to Capital Employed

2.53

EV to Sales

0.98

PEG Ratio

0.93

Dividend Yield

ROCE (Latest)

25.10%

ROE (Latest)

15.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.55% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 61.71%

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 197.98 MM has Fallen at -61.94%

ROCE(HY)

Lowest at 12.92%

INTEREST COVERAGE RATIO(Q)

Lowest at 8,998.28

OPERATING PROFIT MARGIN(Q)

Lowest at 8.2 %

NET PROFIT(Q)

Lowest at JPY 85.54 MM

EPS(Q)

Lowest at JPY 2.97

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

Debtors Turnover Ratio

Highest at 61.71%

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 -0.55% (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.

Pre-Tax Profit

At JPY 197.98 MM has Fallen at -61.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 85.54 MM has Fallen at -74.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 8,998.28

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 8.2 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 85.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 2.97

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.1 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income