LY Corp. (4689) 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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LY Corp.

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Why is LY Corp. ?

Weak Long Term Fundamental Strength with a 10.02% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.29% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 10.02% of over the last 5 years

Flat results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 36.02 %
INTEREST(Q) Highest at JPY 3,633 MM

With ROCE of 8.09%, it has a expensive valuation with a 0.97 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 -3.21%, its profits have risen by 57% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 61.01% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.21% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to LY Corp. 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 LY Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

LY Corp.

-0.98%

525.03

29.53%

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)

11.20%

EBIT Growth (5y)

10.02%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.50

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.41

Tax Ratio

3.69%

Dividend Payout Ratio

26.10%

Pledged Shares

Institutional Holding

0.20%

ROCE (avg)

6.82%

ROE (avg)

4.29%

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

0.97

EV to EBIT

12.02

EV to EBITDA

7.55

EV to Capital Employed

0.97

EV to Sales

1.75

PEG Ratio

0.15

Dividend Yield

ROCE (Latest)

8.09%

ROE (Latest)

10.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 516,378 MM

RAW MATERIAL COST(Y)

Fallen by 0.14% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 16.44 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.05 times

NET SALES(Q)

Highest at JPY 553,987 MM

OPERATING PROFIT(Q)

Highest at JPY 149,074 MM

OPERATING PROFIT MARGIN(Q)

Highest at 26.91 %

-10What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 36.02 %

INTEREST(Q)

Highest at JPY 3,633 MM

Here's what is working for LY Corp.

Operating Cash Flow

Highest at JPY 516,378 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 553,987 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 149,074 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 26.91 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 16.44 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.05 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 0.14% (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 47,899 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 LY Corp.

Interest

Highest at JPY 3,633 MM

in the last five periods and Increased by 8.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 36.02 %

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