Izumi Co., Ltd. (8273) 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

Izumi Co., Ltd.

Kintetsu Department Store Co. Ltd.

H2O Retailing Corp.

Isetan Mitsukoshi Holdings Ltd.

AEON Kyushu Co., Ltd.

Keio Corp.

Takashimaya Co., Ltd.

AEON Hokkaido Corp.

Matsuya Co., Ltd.

Izutsuya Co., Ltd.

J. FRONT RETAILING Co., Ltd.

Why is Izumi Co., Ltd. ?

High Management Efficiency with a high ROCE of 9.33%

Poor long term growth as Net Sales has grown by an annual rate of -3.86% and Operating profit at -6.16% over the last 5 years

With a growth in Net Profit of 9298.36%, the company declared Very Positive results in Feb 26

OPERATING CASH FLOW(Y) Highest at JPY 64,514 MM
RAW MATERIAL COST(Y) Fallen by 0.16% (YoY)
CASH AND EQV(HY) Highest at JPY 46,708 MM

With ROCE of 6.70%, it has a very attractive valuation with a 0.83 Enterprise value to Capital Employed

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 -71.11%, its profits have fallen by -43.7%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -71.11% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Izumi 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 Izumi Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Izumi Co., Ltd.

-71.11%

-0.99

72.33%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.86%

EBIT Growth (5y)

-6.16%

EBIT to Interest (avg)

67.66

Debt to EBITDA (avg)

1.71

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

1.31

Tax Ratio

37.74%

Dividend Payout Ratio

37.79%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

9.33%

ROE (avg)

8.53%

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

0.77

EV to EBIT

12.33

EV to EBITDA

6.70

EV to Capital Employed

0.83

EV to Sales

0.57

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

6.70%

ROE (Latest)

3.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 64,514 MM

RAW MATERIAL COST(Y)

Fallen by 0.16% (YoY

CASH AND EQV(HY)

Highest at JPY 46,708 MM

NET SALES(Q)

Highest at JPY 152,325 MM

OPERATING PROFIT(Q)

Highest at JPY 14,989 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.84 %

PRE-TAX PROFIT(Q)

Highest at JPY 9,225 MM

NET PROFIT(Q)

Highest at JPY 5,895.4 MM

EPS(Q)

Highest at JPY 27.17

-8What is not working for the Company

INTEREST(HY)

At JPY 563 MM has Grown at 22.39%

Here's what is working for Izumi Co., Ltd.

Net Profit

At JPY 5,895.4 MM has Grown at 2,987.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 64,514 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)

Net Sales

Highest at JPY 152,325 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 14,989 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.84 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 9,225 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 5,895.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 27.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 46,708 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.16% (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

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

Interest

At JPY 563 MM has Grown at 22.39%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)