ScoreWhy is Lacto Japan Co., Ltd. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Operating profit has grown by an annual rate 8.98% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Healthy long term growth as Net Sales has grown by an annual rate of 8.63%
3
Flat results in Nov 25
- INTEREST(HY) At JPY 262 MM has Grown at 56.89%
- PRE-TAX PROFIT(Q) At JPY 889 MM has Fallen at -37.99%
4
With ROCE of 8.77%, it has a very attractive valuation with a 1.15 Enterprise value to Capital Employed
- 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 22.09%, its profits have risen by 50.2% ; the PEG ratio of the company is 0.2
5
Underperformed the market in the last 1 year
- The stock has generated a return of 22.09% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Lacto Japan Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Lacto Japan Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lacto Japan Co., Ltd.
22.09%
0.75
33.21%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.63%
EBIT Growth (5y)
8.98%
EBIT to Interest (avg)
16.78
Debt to EBITDA (avg)
5.75
Net Debt to Equity (avg)
0.99
Sales to Capital Employed (avg)
2.63
Tax Ratio
27.21%
Dividend Payout Ratio
30.47%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.02%
ROE (avg)
10.53%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.29
EV to EBIT
13.10
EV to EBITDA
12.02
EV to Capital Employed
1.15
EV to Sales
0.36
PEG Ratio
0.21
Dividend Yield
NA
ROCE (Latest)
8.77%
ROE (Latest)
12.61%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -12.2% (YoY
CASH AND EQV(HY)
Highest at JPY 20,109 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 81.49 %
DIVIDEND PER SHARE(HY)
Highest at JPY 7.63
-9What is not working for the Company
INTEREST(HY)
At JPY 262 MM has Grown at 56.89%
PRE-TAX PROFIT(Q)
At JPY 889 MM has Fallen at -37.99%
Here's what is working for Lacto Japan Co., Ltd.
Cash and Eqv
Highest at JPY 20,109 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 81.49 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at JPY 7.63
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by -12.2% (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 174 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 174 MM has Grown at 64.15%
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 Lacto Japan Co., Ltd.
Interest
At JPY 262 MM has Grown at 56.89%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 889 MM has Fallen at -37.99%
over average net sales of the previous four periods of JPY 1,433.75 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
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