Why is LY Corp. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Healthy long term growth as Net Sales has grown by an annual rate of 12.74%
- OPERATING CASH FLOW(Y) Highest at JPY 474,188 MM
- RAW MATERIAL COST(Y) Fallen by -1.52% (YoY)
- OPERATING PROFIT MARGIN(Q) Highest at 24.39 %
3
With ROCE of 7.45%, it has a expensive valuation with a 1.19 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 -5.74%, its profits have risen by 50.4% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 103.3
4
Majority shareholders : FIIs
How much should you buy?
- 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.
-5.74%
456.89
29.48%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
12.74%
EBIT Growth (5y)
12.30%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.29
Net Debt to Equity (avg)
0.22
Sales to Capital Employed (avg)
0.39
Tax Ratio
25.47%
Dividend Payout Ratio
33.33%
Pledged Shares
0
Institutional Holding
0.17%
ROCE (avg)
6.53%
ROE (avg)
4.29%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.23
EV to EBIT
15.97
EV to EBITDA
10.06
EV to Capital Employed
1.19
EV to Sales
2.27
PEG Ratio
0.29
Dividend Yield
103.32%
ROCE (Latest)
7.45%
ROE (Latest)
7.04%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 474,188 MM
RAW MATERIAL COST(Y)
Fallen by -1.52% (YoY
OPERATING PROFIT MARGIN(Q)
Highest at 24.39 %
-5What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 15.58%
INTEREST(Q)
At JPY 2,657 MM has Grown at 17.57%
DEBT-EQUITY RATIO
(HY)
Highest at 30.56 %
Here's what is working for LY Corp.
Operating Cash Flow
Highest at JPY 474,188 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Operating Profit Margin
Highest at 24.39 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Raw Material Cost
Fallen by -1.52% (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 41,441 MM
in the last five periodsMOJO 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
At JPY 2,657 MM has Grown at 17.57%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 15.58% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debt-Equity Ratio
Highest at 30.56 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






