ITO EN, LTD. (2593) 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

Suntory Beverage & Food Ltd.

Coca-Cola Bottlers Japan Holdings, Inc.

Lifedrink Co., Inc.

Hokkaido Coca-Cola Bottling Co., Ltd.

ITO EN, LTD.

Japan Foods Co., Ltd.

Why is ITO EN, LTD. ?

Weak Long Term Fundamental Strength with a 11.02% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 2.10% and Operating profit at 11.02% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 496 MM has Grown at 93%
DEBT-EQUITY RATIO (HY) Highest at -5.42 %
DIVIDEND PAYOUT RATIO(Y) Lowest at 83.03%

With ROE of 10.17%, it has a fair valuation with a 1.73 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 -12.61%, its profits have risen by 23.5% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.61% 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 FMCG)

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

Is ITO EN, LTD. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

ITO EN, LTD.

-12.61%

235.12

27.65%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.10%

EBIT Growth (5y)

11.02%

EBIT to Interest (avg)

40.56

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.86

Tax Ratio

54.32%

Dividend Payout Ratio

38.87%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

14.45%

ROE (avg)

7.90%

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

1.73

EV to EBIT

13.95

EV to EBITDA

9.63

EV to Capital Employed

1.75

EV to Sales

0.60

PEG Ratio

0.61

Dividend Yield

ROCE (Latest)

12.51%

ROE (Latest)

10.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

NET PROFIT(HY)

At JPY 8,631.94 MM has Grown at 66.34%

DIVIDEND PER SHARE(HY)

Highest at JPY 6.26

-12What is not working for the Company

INTEREST(HY)

At JPY 496 MM has Grown at 93%

DEBT-EQUITY RATIO (HY)

Highest at -5.42 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 83.03%

CASH AND EQV(HY)

Lowest at JPY 148,276 MM

Here's what is working for ITO EN, LTD.

Net Profit

At JPY 8,631.94 MM has Grown at 66.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Dividend per share

Highest at JPY 6.26

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for ITO EN, LTD.

Interest

At JPY 496 MM has Grown at 93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -5.42 % 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 148,276 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio

Lowest at 83.03%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)