Lobtex Co., Ltd. (5969) 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

Asaka Industrial Co., Ltd.

Estic Corp.

Makita Corp.

Lobtex Co., Ltd.

Tenryu Saw Manufacturing Co., Ltd.

TONE Co., Ltd.

Super Tool Co., Ltd.

Kyoto Tool Co., Ltd.

Why is Lobtex Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.34%

The company has been able to generate a Return on Equity (avg) of 5.34% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a -10.66% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.34% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.19% and Operating profit at -10.66% over the last 5 years

With a growth in Operating Profit of 181.43%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At JPY 88.32 MM has Grown at 820.52%
NET PROFIT(Q) At JPY 57.91 MM has Grown at 348.14%
RAW MATERIAL COST(Y) Fallen by -28.92% (YoY)

With ROE of -0.19%, it has a attractive valuation with a 0.49 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 -8.15%, its profits have fallen by -103.2%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lobtex Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Products should be less than 30%

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

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

Is Lobtex Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lobtex Co., Ltd.

-8.35%

-0.30

40.21%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.19%

EBIT Growth (5y)

-10.66%

EBIT to Interest (avg)

12.85

Debt to EBITDA (avg)

0.73

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.75

Tax Ratio

35.80%

Dividend Payout Ratio

45.61%

Pledged Shares

Institutional Holding

ROCE (avg)

6.74%

ROE (avg)

5.34%

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

0.49

EV to EBIT

28.77

EV to EBITDA

9.08

EV to Capital Employed

0.54

EV to Sales

0.53

PEG Ratio

Dividend Yield

ROCE (Latest)

1.88%

ROE (Latest)

-0.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Mildly 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

20What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 88.32 MM has Grown at 820.52%

NET PROFIT(Q)

At JPY 57.91 MM has Grown at 348.14%

RAW MATERIAL COST(Y)

Fallen by -28.92% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 0.84 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.72 times

-8What is not working for the Company

INTEREST(HY)

At JPY 18.75 MM has Grown at 12.53%

CASH AND EQV(HY)

Lowest at JPY 4,245.26 MM

NET SALES(Q)

Lowest at JPY 1,301.85 MM

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

Pre-Tax Profit

At JPY 88.32 MM has Grown at 820.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 57.91 MM has Grown at 348.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 0.84 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.72 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 -28.92% (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 Lobtex Co., Ltd.

Interest

At JPY 18.75 MM has Grown at 12.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 1,301.85 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 4,245.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents