Imura & Co. Ltd. (3955) 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

Uchida Yoko Co., Ltd.

Okamura Corp.

KOKUYO CO., LTD.

Yagami Inc.

Takano Co., Ltd.

Pilot Corp.

AuBEX Corp.

Imura & Co. Ltd.

LIHIT LAB., INC.

Itoki Corp.

King Jim Co., Ltd.

Why is Imura & Co. Ltd. ?

Poor Management Efficiency with a low ROE of 5.98%

The company has been able to generate a Return on Equity (avg) of 5.98% signifying low profitability per unit of shareholders funds

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of -2.25% over the last 5 years

RAW MATERIAL COST(Y) Fallen by -3.95% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 5.26%
NET SALES(Q) Highest at JPY 5,638 MM

With ROE of 4.71%, it has a very attractive valuation with a 0.64 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 -3.66%, its profits have fallen by -23.3%

Below par performance in long term as well as near term

Along with generating -3.66% 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 Imura & Co. Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Imura & Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Imura & Co. Ltd.

-3.66%

-0.33

15.86%

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)

-2.25%

EBIT Growth (5y)

14.15%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

1.25

Tax Ratio

38.58%

Dividend Payout Ratio

38.88%

Pledged Shares

Institutional Holding

ROCE (avg)

9.41%

ROE (avg)

5.98%

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

0.64

EV to EBIT

7.67

EV to EBITDA

4.70

EV to Capital Employed

0.63

EV to Sales

0.48

PEG Ratio

Dividend Yield

ROCE (Latest)

8.19%

ROE (Latest)

4.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.95% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.26%

NET SALES(Q)

Highest at JPY 5,638 MM

PRE-TAX PROFIT(Q)

At JPY 528 MM has Grown at 57.61%

NET PROFIT(Q)

At JPY 375.45 MM has Grown at 89.22%

-4What is not working for the Company

INTEREST(9M)

At JPY 27 MM has Grown at inf%

Here's what is working for Imura & Co. Ltd.

Net Sales

Highest at JPY 5,638 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 528 MM has Grown at 57.61%

over average net sales of the previous four periods of JPY 335 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 375.45 MM has Grown at 89.22%

over average net sales of the previous four periods of JPY 198.42 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 5.26%

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 -3.95% (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 Imura & Co. Ltd.

Interest

At JPY 27 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)