LIHIT LAB., INC. (7975) 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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LIHIT LAB., INC.

Why is LIHIT LAB., INC. ?

Poor Management Efficiency with a low ROE of 1.99%

The company has been able to generate a Return on Equity (avg) of 1.99% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.24% and Operating profit at -18.37% over the last 5 years

With a fall in Net Sales of -7.88%, the company declared Very Negative results in Nov 25

The company has declared negative results in Jan 70 after 2 consecutive negative quarters
INTEREST COVERAGE RATIO(Q) Lowest at 3,441.63
PRE-TAX PROFIT(Q) Lowest at JPY -5.28 MM
NET PROFIT(Q) Lowest at JPY -6.57 MM

Underperformed the market in the last 1 year

The stock has generated a return of 2.21% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is LIHIT LAB., INC. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

LIHIT LAB., INC.

2.21%

-0.05

22.91%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.24%

EBIT Growth (5y)

-18.37%

EBIT to Interest (avg)

0.66

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.83

Tax Ratio

19.70%

Dividend Payout Ratio

20.61%

Pledged Shares

Institutional Holding

ROCE (avg)

1.97%

ROE (avg)

1.99%

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

0.41

EV to EBIT

14.01

EV to EBITDA

5.37

EV to Capital Employed

0.29

EV to Sales

0.27

PEG Ratio

0.02

Dividend Yield

0.13%

ROCE (Latest)

2.04%

ROE (Latest)

3.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.4% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6 times

-25What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,441.63

PRE-TAX PROFIT(Q)

Lowest at JPY -5.28 MM

NET PROFIT(Q)

Lowest at JPY -6.57 MM

CASH AND EQV(HY)

Lowest at JPY 2,628.08 MM

NET SALES(Q)

Lowest at JPY 1,910.41 MM

OPERATING PROFIT(Q)

Lowest at JPY 30.84 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.61 %

EPS(Q)

Lowest at JPY -1.54

Here's what is working for LIHIT LAB., INC.

Debtors Turnover Ratio

Highest at 6 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.4% (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 LIHIT LAB., INC.

Pre-Tax Profit

At JPY -5.28 MM has Fallen at -101.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -6.57 MM has Fallen at -103.52%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 3,441.63

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at JPY -5.28 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -6.57 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 1,910.41 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 30.84 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 1.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at JPY -1.54

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 2,628.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents