Iwatsuka Confectionery Co., Ltd. (2221) 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

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Iwatsuka Confectionery Co., Ltd.

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Why is Iwatsuka Confectionery Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.74%

The company has been able to generate a Return on Equity (avg) of 3.74% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 51.42

Low Debt Company with Strong Long Term Fundamental Strength

With a growth in Net Profit of 79.35%, the company declared Very Positive results in Dec 25

INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
NET SALES(Q) Highest at JPY 8,324.75 MM
OPERATING PROFIT(Q) Highest at JPY 1,138.43 MM

With ROE of 4.31%, it has a attractive valuation with a 0.52 Price to Book Value

Over the past year, while the stock has generated a return of 15.29%, its profits have risen by 50.5%

Underperformed the market in the last 1 year

The stock has generated a return of 15.29% 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 Iwatsuka Confectionery Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Iwatsuka Confectionery Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Iwatsuka Confectionery Co., Ltd.

-100.0%

1.21

22.14%

Japan Nikkei 225

38.94%

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)

1.79%

EBIT Growth (5y)

36.26%

EBIT to Interest (avg)

51.42

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.34

Tax Ratio

26.06%

Dividend Payout Ratio

10.73%

Pledged Shares

Institutional Holding

ROCE (avg)

0.51%

ROE (avg)

3.74%

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

0.52

EV to EBIT

39.02

EV to EBITDA

13.27

EV to Capital Employed

0.49

EV to Sales

1.27

PEG Ratio

Dividend Yield

ROCE (Latest)

1.27%

ROE (Latest)

4.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

NET SALES(Q)

Highest at JPY 8,324.75 MM

OPERATING PROFIT(Q)

Highest at JPY 1,138.43 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.68 %

PRE-TAX PROFIT(Q)

At JPY 795.86 MM has Grown at 74.59%

NET PROFIT(Q)

At JPY 555.67 MM has Grown at 76.38%

-1What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -2.87 %

Here's what is working for Iwatsuka Confectionery Co., Ltd.

Net Sales

Highest at JPY 8,324.75 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 8,324.75 MM has Grown at 17.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,138.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.68 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 795.86 MM has Grown at 74.59%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 555.67 MM has Grown at 76.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Depreciation

Highest at JPY 448.8 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 Iwatsuka Confectionery Co., Ltd.

Debt-Equity Ratio

Highest at -2.87 %

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