Lifull Co., Ltd. (2120) 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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Lifull Co., Ltd.

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Why is Lifull Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.48%

The company has been able to generate a Return on Equity (avg) of 3.48% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 18.18

Poor long term growth as Net Sales has grown by an annual rate of -4.94% and Operating profit at 2.55% over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 4,675
CASH AND EQV(HY) Lowest at JPY 18,209 MM
DEBT-EQUITY RATIO (HY) Highest at 5.83 %

With ROE of 11.08%, it has a very attractive valuation with a 1.11 Price to Book Value

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 6.70%, its profits have risen by 116.1% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 6.70% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lifull Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Lifull Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Lifull Co., Ltd.

-100.0%

75.52

40.37%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.94%

EBIT Growth (5y)

2.55%

EBIT to Interest (avg)

18.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.88

Tax Ratio

29.54%

Dividend Payout Ratio

25.08%

Pledged Shares

Institutional Holding

ROCE (avg)

8.99%

ROE (avg)

3.48%

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

1.11

EV to EBIT

5.94

EV to EBITDA

4.69

EV to Capital Employed

1.12

EV to Sales

1.05

PEG Ratio

0.09

Dividend Yield

ROCE (Latest)

18.81%

ROE (Latest)

11.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 5,291 MM

ROCE(HY)

Highest at 12.77%

RAW MATERIAL COST(Y)

Fallen by -2.53% (YoY

NET SALES(Q)

Highest at JPY 7,908 MM

NET PROFIT(Q)

At JPY 794 MM has Grown at 127.51%

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,675

CASH AND EQV(HY)

Lowest at JPY 18,209 MM

DEBT-EQUITY RATIO (HY)

Highest at 5.83 %

INTEREST(Q)

Highest at JPY 32 MM

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

Operating Cash Flow

Highest at JPY 5,291 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 7,908 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 7,908 MM has Grown at 33.49%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

At JPY 794 MM has Grown at 127.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -2.53% (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 Lifull Co., Ltd.

Interest

At JPY 32 MM has Grown at 28%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 4,675

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 32 MM

in the last five periods and Increased by 28% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 18,209 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 5.83 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio