Japan Living Warranty, Inc. (7320) 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

Tokyu Construction Co., Ltd.

NISSHIN GROUP HOLDINGS Co., Ltd.

Tama Home Co., Ltd.

Asanuma Corp.

Token Corp.

Sankyo Frontier Co., Ltd.

Japan Living Warranty, Inc.

Takamatsu Construction Group Co. Ltd.

Grandy House Corp.

NIHON HOUSE HOLDINGS Co., Ltd.

First Juken Co., Ltd.

Why is Japan Living Warranty, Inc. ?

High Management Efficiency with a high ROE of 35.94%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 89.54

Healthy long term growth as Net Sales has grown by an annual rate of 26.25% and Operating profit at 41.28%

Positive results in Dec 25

DIVIDEND PAYOUT RATIO(Y) Highest at 25.38%
RAW MATERIAL COST(Y) Fallen by -2.41% (YoY)
NET PROFIT(9M) Higher at JPY 1,944.27 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 5.39%, its profits have risen by 34.3% ; the PEG ratio of the company is 1.1

Underperformed the market in the last 1 year

The stock has generated a return of 5.39% 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 Japan Living Warranty, Inc. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Japan Living Warranty, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Japan Living Warranty, Inc.

5.39%

-0.64

76.38%

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)

26.25%

EBIT Growth (5y)

41.28%

EBIT to Interest (avg)

89.54

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.93

Tax Ratio

25.33%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

233.91%

ROE (avg)

35.94%

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

3.59

EV to EBIT

12.48

EV to EBITDA

10.87

EV to Capital Employed

4.46

EV to Sales

2.90

PEG Ratio

1.11

Dividend Yield

ROCE (Latest)

35.74%

ROE (Latest)

22.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

11What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 25.38%

RAW MATERIAL COST(Y)

Fallen by -2.41% (YoY

NET PROFIT(9M)

Higher at JPY 1,944.27 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 3.18

PRE-TAX PROFIT(Q)

Highest at JPY 667.27 MM

EPS(Q)

Highest at JPY 39.4

-8What is not working for the Company

INTEREST(HY)

At JPY 12.41 MM has Grown at 15.64%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.18 times

Here's what is working for Japan Living Warranty, Inc.

Net Profit

At JPY 1,944.27 MM has Grown at 117.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 667.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 39.4

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Dividend per share

Highest at JPY 3.18

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

Higher at JPY 1,944.27 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Dividend Payout Ratio

Highest at 25.38%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.41% (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 106.24 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 106.24 MM has Grown at 67.12%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Japan Living Warranty, Inc.

Interest

At JPY 12.41 MM has Grown at 15.64%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 3.18 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio