LITALICO, Inc. (7366) (6187) 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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Digital Arts Inc.

Recruit Holdings Co., Ltd.

M3, Inc.

LITALICO, Inc. (7366)

LY Corp.

Digital Garage, Inc.

Proto Corp.

Why is LITALICO, Inc. (7366) ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 23.00%

Healthy long term growth as Net Sales has grown by an annual rate of 18.94% and Operating profit at 26.98%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 87.69

Flat results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 121.77 %
INTEREST(Q) Highest at JPY 125 MM

With ROCE of 17.56%, it has a attractive valuation with a 2.73 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 19.61%, its profits have risen by 24.7% ; the PEG ratio of the company is 0.9

Underperformed the market in the last 1 year

The stock has generated a return of 19.61% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to LITALICO, Inc. (7366) 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 LITALICO, Inc. (7366) for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

LITALICO, Inc. (7366)

23.97%

0.01

41.69%

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)

18.94%

EBIT Growth (5y)

26.98%

EBIT to Interest (avg)

57.84

Debt to EBITDA (avg)

1.05

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

1.30

Tax Ratio

30.71%

Dividend Payout Ratio

14.19%

Pledged Shares

Institutional Holding

ROCE (avg)

22.26%

ROE (avg)

22.75%

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

4.13

EV to EBIT

15.52

EV to EBITDA

8.40

EV to Capital Employed

2.73

EV to Sales

1.91

PEG Ratio

0.85

Dividend Yield

ROCE (Latest)

17.56%

ROE (Latest)

19.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

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

13What is working for the Company

ROCE(HY)

Highest at 24.63%

OPERATING PROFIT MARGIN(Q)

Highest at 22.77 %

RAW MATERIAL COST(Y)

Fallen by -10.77% (YoY

NET SALES(Q)

Highest at JPY 10,844 MM

OPERATING PROFIT(Q)

Highest at JPY 2,469 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,316 MM

-8What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 121.77 %

INTEREST(Q)

Highest at JPY 125 MM

Here's what is working for LITALICO, Inc. (7366)

Operating Profit Margin

Highest at 22.77 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Sales

Highest at JPY 10,844 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 10,844 MM has Grown at 17.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,469 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 1,316 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -10.77% (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

Depreciation

Highest at JPY 1,025 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for LITALICO, Inc. (7366)

Interest

At JPY 125 MM has Grown at 19.05%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 125 MM

in the last five periods and Increased by 19.05% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 121.77 %

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