ITOCHU ENEX CO., LTD. (8133) 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

Nextage Co., Ltd.

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G-7 Holdings, Inc.

VT Holdings Co., Ltd.

IDOM, Inc.

Hikari Tsushin, Inc.

ITOCHU ENEX CO., LTD.

KU Holdings Co., Ltd.

Mie Kotsu Group Holdings, Inc.

Nitori Holdings Co., Ltd.

Why is ITOCHU ENEX CO., LTD. ?

High Management Efficiency with a high ROE of 10.82%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 22.72

Poor long term growth as Operating profit has grown by an annual rate 6.25% of over the last 5 years

Negative results in Dec 25

INTEREST(HY) At JPY 463 MM has Grown at 12.65%
INTEREST COVERAGE RATIO(Q) Lowest at 4,507.39
NET SALES(HY) At JPY 423,671 MM has Grown at -9.34%

With ROE of 11.75%, it has a very attractive valuation with a 1.14 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 17.85%, its profits have risen by 19.1% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 17.85% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ITOCHU ENEX CO., LTD. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is ITOCHU ENEX CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ITOCHU ENEX CO., LTD.

17.85%

1.20

23.23%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.60%

EBIT Growth (5y)

6.25%

EBIT to Interest (avg)

22.72

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

5.31

Tax Ratio

30.04%

Dividend Payout Ratio

40.89%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

13.33%

ROE (avg)

10.82%

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

1.14

EV to EBIT

8.20

EV to EBITDA

4.30

EV to Capital Employed

1.14

EV to Sales

0.21

PEG Ratio

0.51

Dividend Yield

0.03%

ROCE (Latest)

13.94%

ROE (Latest)

11.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 37,428 MM

RAW MATERIAL COST(Y)

Fallen by -0.77% (YoY

-14What is not working for the Company

INTEREST(HY)

At JPY 463 MM has Grown at 12.65%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,507.39

NET SALES(HY)

At JPY 423,671 MM has Grown at -9.34%

CASH AND EQV(HY)

Lowest at JPY 30,129 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 25.31 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.44 times

Here's what is working for ITOCHU ENEX CO., LTD.

Operating Cash Flow

Highest at JPY 37,428 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Raw Material Cost

Fallen by -0.77% (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

Depreciation

Highest at JPY 5,577 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for ITOCHU ENEX CO., LTD.

Interest Coverage Ratio

Lowest at 4,507.39 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 463 MM has Grown at 12.65%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 423,671 MM has Grown at -9.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 30,129 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 25.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 7.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio