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

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 3.74%

Poor long term growth as Net Sales has grown by an annual rate of 4.56% and Operating profit at 25.37% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 3.74% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.56% and Operating profit at 25.37% over the last 5 years

Negative results in Jun 26

PRE-TAX PROFIT(Q) At JPY 11.96 MM has Fallen at -96.73%
NET PROFIT(Q) At JPY 11.08 MM has Fallen at -95.9%
ROCE(HY) Lowest at 2.73%

With ROE of 3.31%, 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 0.66%, its profits have fallen by -15.3%

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 Iwatsuka Confectionery Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Iwatsuka Confectionery Co., Ltd.

0.66%

1.57

12.62%

Japan Nikkei 225

57.85%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.56%

EBIT Growth (5y)

25.37%

EBIT to Interest (avg)

92.42

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.36

Tax Ratio

29.78%

Dividend Payout Ratio

16.19%

Pledged Shares

Institutional Holding

ROCE (avg)

0.71%

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

33.98

EV to EBITDA

12.57

EV to Capital Employed

0.50

EV to Sales

1.19

PEG Ratio

Dividend Yield

ROCE (Latest)

1.48%

ROE (Latest)

3.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

DEBT-EQUITY RATIO (HY)

Lowest at -3.61 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.39 times

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 11.96 MM has Fallen at -96.73%

NET PROFIT(Q)

At JPY 11.08 MM has Fallen at -95.9%

ROCE(HY)

Lowest at 2.73%

RAW MATERIAL COST(Y)

Grown by 14.11% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.33 times

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

Debt-Equity Ratio

Lowest at -3.61 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.39 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Iwatsuka Confectionery Co., Ltd.

Pre-Tax Profit

At JPY 11.96 MM has Fallen at -96.73%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 11.08 MM has Fallen at -95.9%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 7.33 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 14.11% (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