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

Lifedrink Co., Inc.

Hokkaido Coca-Cola Bottling Co., Ltd.

Suntory Beverage & Food Ltd.

Coca-Cola Bottlers Japan Holdings, Inc.

ITO EN, LTD.

Japan Foods Co., Ltd.

Why is ITO EN, LTD. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.44% and Operating profit at 2.87% over the last 5 years

Negative results in Oct 25

DEBT-EQUITY RATIO (HY) Highest at -7.5 %
INTEREST COVERAGE RATIO(Q) Lowest at 3,312.97
RAW MATERIAL COST(Y) Grown by 5.37% (YoY)

With ROE of 8.56%, it has a expensive valuation with a 1.72 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 -9.72%, its profits have fallen by -13.6%
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 -9.72% 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.

-9.72%

254.90

24.07%

Japan Nikkei 225

41.38%

1.48

27.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.44%

EBIT Growth (5y)

2.87%

EBIT to Interest (avg)

42.28

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.84

Tax Ratio

34.77%

Dividend Payout Ratio

38.87%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

14.35%

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

1.72

EV to EBIT

12.19

EV to EBITDA

8.64

EV to Capital Employed

1.81

EV to Sales

0.59

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

14.81%

ROE (Latest)

8.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

DIVIDEND PER SHARE(HY)

Highest at JPY 6.76

NET SALES(Q)

Highest at JPY 131,603 MM

-17What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -7.5 %

INTEREST COVERAGE RATIO(Q)

Lowest at 3,312.97

RAW MATERIAL COST(Y)

Grown by 5.37% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.74 times

INTEREST(Q)

Highest at JPY 239 MM

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

Net Sales

Highest at JPY 131,603 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 6.76

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 239 MM has Grown at 37.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,312.97

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -7.5 % 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

Interest

Highest at JPY 239 MM

in the last five periods and Increased by 37.36% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 4.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.37% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales