Lacto Japan Co., Ltd. (3139) 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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Lacto Japan Co., Ltd.

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Why is Lacto Japan Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 13.13% of over the last 5 years
The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 13.13% of over the last 5 years

Negative results in May 26

NET PROFIT(HY) At JPY 1,745.13 MM has Grown at -37.56%
ROCE(HY) Lowest at 10.41%
INTEREST COVERAGE RATIO(Q) Lowest at 820.3

With ROCE of 8.63%, it has a very attractive valuation with a 1.00 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 -19.48%, its profits have risen by 9.8% ; the PEG ratio of the company is 0.9

Below par performance in long term as well as near term

Along with generating -19.48% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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.

-19.41%

0.49

24.59%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.70%

EBIT Growth (5y)

13.13%

EBIT to Interest (avg)

14.56

Debt to EBITDA (avg)

6.26

Net Debt to Equity (avg)

1.12

Sales to Capital Employed (avg)

2.59

Tax Ratio

26.36%

Dividend Payout Ratio

30.47%

Pledged Shares

Institutional Holding

ROCE (avg)

7.56%

ROE (avg)

10.77%

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

1.01

EV to EBIT

11.62

EV to EBITDA

10.69

EV to Capital Employed

1.00

EV to Sales

0.35

PEG Ratio

0.86

Dividend Yield

ROCE (Latest)

8.63%

ROE (Latest)

11.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 7.1

DIVIDEND PAYOUT RATIO(Y)

Highest at 67.49%

CASH AND EQV(HY)

Highest at JPY 22,997 MM

-21What is not working for the Company

NET PROFIT(HY)

At JPY 1,745.13 MM has Grown at -37.56%

ROCE(HY)

Lowest at 10.41%

INTEREST COVERAGE RATIO(Q)

Lowest at 820.3

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.49 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.1 times

INTEREST(Q)

Highest at JPY 197 MM

Here's what is working for Lacto Japan Co., Ltd.

Dividend per share

Highest at JPY 7.1 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 22,997 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 67.49%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

At JPY 130 MM has Grown at 30%

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 197 MM has Grown at 42.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 820.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 1,745.13 MM has Grown at -37.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Interest

Highest at JPY 197 MM

in the last five periods and Increased by 42.75% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.49 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 7.1 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio