Konaka Co., Ltd. (7494) 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

WA, Inc. (Japan)

NISHIMATSUYA CHAIN Co., Ltd.

AOKI Holdings, Inc.

Konaka Co., Ltd.

TOKYO BASE Co., Ltd.

UNITED ARROWS LTD.

Chiyoda Co., Ltd.

XEBIO Holdings Co., Ltd.

AOYAMA TRADING Co., Ltd.

Baroque Japan Ltd.

RIGHT ON Co., Ltd.

Why is Konaka Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

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 1.15% and Operating profit at 7.96% 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 0.47% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.15% and Operating profit at 7.96% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At JPY 105 MM has Grown at 25%
NET SALES(HY) At JPY 30,775 MM has Grown at -9.64%
DEBTORS TURNOVER RATIO(HY) Lowest at 15.27%

With ROE of -0.48%, it has a risky valuation with a 0.49 Price to Book Value

Over the past year, while the stock has generated a return of 1.27%, its profits have fallen by -118.3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Konaka Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Konaka Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Konaka Co., Ltd.

-100.0%

-0.81

19.90%

Japan Nikkei 225

27.37%

1.06

25.71%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.15%

EBIT Growth (5y)

7.96%

EBIT to Interest (avg)

-23.98

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

1.76

Tax Ratio

7.03%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.47%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.49

EV to EBIT

-20.12

EV to EBITDA

-88.93

EV to Capital Employed

0.67

EV to Sales

0.31

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.34%

ROE (Latest)

-0.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

14What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.32% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 56.72 %

PRE-TAX PROFIT(Q)

At JPY -55 MM has Grown at 92.11%

NET PROFIT(Q)

At JPY -85 MM has Grown at 89.56%

-16What is not working for the Company

INTEREST(HY)

At JPY 105 MM has Grown at 25%

NET SALES(HY)

At JPY 30,775 MM has Grown at -9.64%

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.27%

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

Pre-Tax Profit

At JPY -55 MM has Grown at 92.11%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -85 MM has Grown at 89.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 56.72 %

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 -4.32% (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 Konaka Co., Ltd.

Interest

At JPY 56 MM has Grown at 14.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Fallen at -12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 56 MM

in the last five periods and Increased by 14.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 15.27%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio