Japan Lifeline Co., Ltd. (7575) 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

Sumitomo Bakelite Co., Ltd.

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Asahi Intecc Co., Ltd.

Menicon Co., Ltd.

Japan Lifeline Co., Ltd.

Fukuda Denshi Co., Ltd.

Nakanishi, Inc.

Mani, Inc.

Nihon Kohden Corp.

PHC Holdings Corp.

Takara Bio, Inc.

Why is Japan Lifeline Co., Ltd. ?

High Management Efficiency with a high ROE of 14.22%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 1.71% of over the last 5 years

Flat results in Dec 25

INVENTORY TURNOVER RATIO(HY) Lowest at 1.29 times
INTEREST(Q) Highest at JPY 10 MM
NET PROFIT(Q) Lowest at JPY 2,120.31 MM

With ROE of 15.74%, it has a very attractive valuation with a 1.85 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 -10.64%, its profits have risen by 20% ; the PEG ratio of the company is 0.6

Below par performance in long term as well as near term

Along with generating -10.64% 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 Japan Lifeline Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Japan Lifeline Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Japan Lifeline Co., Ltd.

-10.64%

0.99

27.03%

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)

1.81%

EBIT Growth (5y)

1.71%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.88

Tax Ratio

22.51%

Dividend Payout Ratio

40.33%

Pledged Shares

Institutional Holding

ROCE (avg)

22.47%

ROE (avg)

14.22%

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

1.85

EV to EBIT

9.11

EV to EBITDA

7.79

EV to Capital Employed

1.97

EV to Sales

1.83

PEG Ratio

0.59

Dividend Yield

ROCE (Latest)

21.62%

ROE (Latest)

15.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.89% (YoY

NET SALES(Q)

Highest at JPY 15,120 MM

-7What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.29 times

INTEREST(Q)

Highest at JPY 10 MM

NET PROFIT(Q)

Lowest at JPY 2,120.31 MM

EPS(Q)

Lowest at JPY 29.17

Here's what is working for Japan Lifeline Co., Ltd.

Net Sales

Highest at JPY 15,120 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by 1.89% (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 Japan Lifeline Co., Ltd.

Interest

At JPY 10 MM has Grown at 11.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 1.29 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 10 MM

in the last five periods and Increased by 11.11% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Lowest at JPY 2,120.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 29.17

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)