ScoreWhy is Lacto Japan Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Operating profit has grown by an annual rate 14.99% of over the last 5 years
- The company is Net-Debt Free
2
Healthy long term growth as Net Sales has grown by an annual rate of 10.53%
3
Negative results in Feb 26
- RAW MATERIAL COST(Y) Grown by 11.42% (YoY)
- INTEREST(Q) Highest at JPY 138 MM
- OPERATING PROFIT MARGIN(Q) Lowest at 2.88 %
4
With ROCE of 10.06%, it has a very attractive valuation with a 1.08 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 -12.47%, its profits have risen by 37.1% ; the PEG ratio of the company is 0.2
5
Below par performance in long term as well as near term
- Along with generating -12.47% 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 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.
-11.77%
0.34
26.84%
Japan Nikkei 225
71.75%
2.62
26.55%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.53%
EBIT Growth (5y)
14.99%
EBIT to Interest (avg)
16.78
Debt to EBITDA (avg)
5.75
Net Debt to Equity (avg)
1.12
Sales to Capital Employed (avg)
2.64
Tax Ratio
27.21%
Dividend Payout Ratio
30.47%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.02%
ROE (avg)
10.77%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.14
EV to EBIT
10.72
EV to EBITDA
9.90
EV to Capital Employed
1.08
EV to Sales
0.35
PEG Ratio
0.23
Dividend Yield
NA
ROCE (Latest)
10.06%
ROE (Latest)
13.28%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
CASH AND EQV(HY)
Highest at JPY 21,499 MM
-12What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 11.42% (YoY
INTEREST(Q)
Highest at JPY 138 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 2.88 %
NET PROFIT(Q)
At JPY 769.32 MM has Fallen at -28.56%
Here's what is working for Lacto Japan Co., Ltd.
Cash and Eqv
Highest at JPY 21,499 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Lacto Japan Co., Ltd.
Interest
Highest at JPY 138 MM
in the last five periods and Increased by 8.66% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 2.88 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
At JPY 769.32 MM has Fallen at -28.56%
over average net sales of the previous four periods of JPY 1,076.94 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Raw Material Cost
Grown by 11.42% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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