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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

BuySell Technologies Co., Ltd.

Forum Engineering, Inc.

ZIGExN Co., Ltd.

AirTrip Corp.

CareNet, Inc. (Japan)

Lifull Co., Ltd.

istyle, Inc.

MTI Ltd.

Proto Corp.

Enechange Ltd.

giftee, Inc.

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 -4.19% and Operating profit at -11.03% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET SALES(HY) At JPY 12,692 MM has Grown at -18.34%
INTEREST(Q) At JPY 15 MM has Grown at inf%
CASH AND EQV(HY) Lowest at JPY 17,455 MM

With ROE of -30.91%, it has a risky valuation with a 0.98 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 -15.66%, its profits have fallen by -958.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.66% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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.

-15.66%

64.33

41.24%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.19%

EBIT Growth (5y)

-11.03%

EBIT to Interest (avg)

18.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.95

Tax Ratio

29.54%

Dividend Payout Ratio

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

NA (Loss Making)

Industry P/E

Price to Book Value

0.98

EV to EBIT

8.50

EV to EBITDA

5.15

EV to Capital Employed

0.97

EV to Sales

0.73

PEG Ratio

Dividend Yield

ROCE (Latest)

11.45%

ROE (Latest)

-30.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

12What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.4% (YoY

PRE-TAX PROFIT(Q)

At JPY 1,181 MM has Grown at 66.57%

NET PROFIT(Q)

Highest at JPY 764 MM

-11What is not working for the Company

NET SALES(HY)

At JPY 12,692 MM has Grown at -18.34%

INTEREST(Q)

At JPY 15 MM has Grown at inf%

CASH AND EQV(HY)

Lowest at JPY 17,455 MM

DEBT-EQUITY RATIO (HY)

Highest at -3.97 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.02%

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

Net Profit

At JPY 764 MM has Grown at 233.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 1,181 MM has Grown at 66.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 764 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -4.4% (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.

Net Sales

At JPY 12,692 MM has Grown at -18.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 15 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 17,455 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -3.97 %

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

Debtors Turnover Ratio

Lowest at 7.02%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio