LTS, Inc. (6560) 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

Entrust, Inc. (Japan)

Meiko Network Japan Co., Ltd.

Shin Maint Holdings Co., Ltd.

LTS, Inc.

Tanabe Consulting Group Co., Ltd.

Direct Marketing MiX Inc.

Payroll, Inc. (Japan)

Paraca, Inc.

Asante, Inc.

ProjectHoldings, Inc.

Kufu Co., Inc.

Why is LTS, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 17.87%

Healthy long term growth as Net Sales has grown by an annual rate of 31.54% and Operating profit at 27.19%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 71.90

The company has declared Positive results for the last 3 consecutive quarters

CASH AND EQV(HY) Highest at JPY 8,902 MM
NET PROFIT(Q) At JPY 79 MM has Grown at 68.09%

With ROE of 23.09%, it has a attractive valuation with a 2.00 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 -13.81%, its profits have risen by 108.7% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to LTS, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is LTS, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

LTS, Inc.

-13.81%

-0.07

44.97%

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)

31.54%

EBIT Growth (5y)

27.19%

EBIT to Interest (avg)

71.90

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

1.98

Tax Ratio

35.31%

Dividend Payout Ratio

13.87%

Pledged Shares

Institutional Holding

ROCE (avg)

54.05%

ROE (avg)

17.87%

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

2.00

EV to EBIT

6.92

EV to EBITDA

5.38

EV to Capital Employed

2.39

EV to Sales

0.48

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

34.55%

ROE (Latest)

23.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

4What is working for the Company

CASH AND EQV(HY)

Highest at JPY 8,902 MM

NET PROFIT(Q)

At JPY 79 MM has Grown at 68.09%

-6What is not working for the Company

INTEREST(9M)

At JPY 37 MM has Grown at 8.4%

RAW MATERIAL COST(Y)

Grown by 8.09% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 108 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.6 %

EPS(Q)

Lowest at JPY -23.21

Here's what is working for LTS, Inc.

Net Profit

At JPY 79 MM has Grown at 68.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 8,902 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for LTS, Inc.

Interest

At JPY 37 MM has Grown at 8.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 108 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 2.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at JPY -23.21

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 8.09% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales