Karula Co., Ltd. (2789) 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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Karula Co., Ltd.

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VIA Holdings, Inc.

Why is Karula Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.54%

The company has been able to generate a Return on Capital Employed (avg) of 4.54% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -1.25% and Operating profit at 44.60% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.48% signifying low profitability per unit of shareholders funds

Negative results in Nov 25

ROCE(HY) Lowest at 14.23%
INVENTORY TURNOVER RATIO(HY) Lowest at 8.57 times
DEBTORS TURNOVER RATIO(HY) Lowest at 52.83 times

Underperformed the market in the last 1 year

The stock has generated a return of 1.32% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%

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 Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Karula Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Karula Co., Ltd.

-100.0%

0.19

14.96%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.25%

EBIT Growth (5y)

44.60%

EBIT to Interest (avg)

-2.96

Debt to EBITDA (avg)

3.85

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

1.57

Tax Ratio

7.52%

Dividend Payout Ratio

7.93%

Pledged Shares

Institutional Holding

ROCE (avg)

5.25%

ROE (avg)

9.48%

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

1.39

EV to EBIT

10.70

EV to EBITDA

7.69

EV to Capital Employed

1.24

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

11.63%

ROE (Latest)

16.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.9% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 45.65 %

-13What is not working for the Company

ROCE(HY)

Lowest at 14.23%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.57 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 52.83 times

PRE-TAX PROFIT(Q)

Lowest at JPY 25.24 MM

NET PROFIT(Q)

Lowest at JPY 17.04 MM

EPS(Q)

Lowest at JPY 2.96

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

Debt-Equity Ratio

Lowest at 45.65 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.9% (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 47.98 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

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

Pre-Tax Profit

At JPY 25.24 MM has Fallen at -71.06%

over average net sales of the previous four periods of JPY 87.21 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 17.04 MM has Fallen at -78.82%

over average net sales of the previous four periods of JPY 80.45 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 25.24 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 17.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 2.96

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 8.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 52.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.31 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income