Joyful Honda Co. Ltd. (3191) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Alleanza Holdings Co., Ltd.

DCM Holdings Co., Ltd.

Keiyo Co., Ltd.

Handsman Co., Ltd.

Joyful Honda Co. Ltd.

Arclands Corp.

Kohnan Shoji Co., Ltd.

NAFCO Co., Ltd.

KOMERI CO., LTD.

Makiya Co., Ltd.

Sekichu Co., Ltd.

Why is Joyful Honda Co. Ltd. ?

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

Poor long term growth as Net Sales has grown by an annual rate of -2.63% over the last 5 years

Negative results in Jun 25

ROCE(HY) Lowest at 6.86%
INTEREST COVERAGE RATIO(Q) Lowest at 17,861.11
DEBT-EQUITY RATIO (HY) Highest at -14.39 %

With ROE of 6.70%, it has a very attractive valuation with a 1.09 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 15.25%, its profits have fallen by -2.2% ; the PEG ratio of the company is 6.5

Underperformed the market in the last 1 year

The stock has generated a return of 15.25% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Joyful Honda Co. Ltd. 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 Joyful Honda Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Joyful Honda Co. Ltd.

15.25%

0.02

14.47%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.63%

EBIT Growth (5y)

1.71%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.00

Tax Ratio

30.24%

Dividend Payout Ratio

47.34%

Pledged Shares

Institutional Holding

ROCE (avg)

11.59%

ROE (avg)

8.09%

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

1.09

EV to EBIT

10.88

EV to EBITDA

8.36

EV to Capital Employed

1.10

EV to Sales

0.88

PEG Ratio

6.53

Dividend Yield

ROCE (Latest)

10.14%

ROE (Latest)

6.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 29.83

DIVIDEND PAYOUT RATIO(Y)

Highest at 92.66%

RAW MATERIAL COST(Y)

Fallen by -7.85% (YoY

NET SALES(Q)

Highest at JPY 35,298 MM

-19What is not working for the Company

ROCE(HY)

Lowest at 6.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 17,861.11

DEBT-EQUITY RATIO (HY)

Highest at -14.39 %

INTEREST(Q)

Highest at JPY 18 MM

OPERATING PROFIT(Q)

Lowest at JPY 3,215 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.11 %

PRE-TAX PROFIT(Q)

Lowest at JPY 2,476 MM

Here's what is working for Joyful Honda Co. Ltd.

Dividend per share

Highest at JPY 29.83 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 35,298 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Dividend Payout Ratio

Highest at 92.66%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -7.85% (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 Joyful Honda Co. Ltd.

Interest

At JPY 18 MM has Grown at 20%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 17,861.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 18 MM

in the last five periods and Increased by 20% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 3,215 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 9.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 2,476 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Highest at -14.39 %

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