Matsuya Co., Ltd. (8237) 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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Keio Corp.

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Matsuya Co., Ltd.

Izutsuya Co., Ltd.

J. FRONT RETAILING Co., Ltd.

Why is Matsuya Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.68%

The company has been able to generate a Return on Capital Employed (avg) of 3.68% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -5.04% and Operating profit at 23.69% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 3.68% signifying low profitability per unit of total capital (equity and debt)

Flat results in Feb 26

INVENTORY TURNOVER RATIO(HY) Lowest at 10.37 times
DEBT-EQUITY RATIO (HY) Highest at 67.45 %
INTEREST(Q) Highest at JPY 95 MM

With ROCE of 5.78%, it has a very expensive valuation with a 2.79 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 77.26%, its profits have fallen by -29%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Matsuya Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Matsuya Co., Ltd.

77.26%

1.41

51.05%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.04%

EBIT Growth (5y)

23.69%

EBIT to Interest (avg)

2.50

Debt to EBITDA (avg)

4.57

Net Debt to Equity (avg)

0.75

Sales to Capital Employed (avg)

0.94

Tax Ratio

36.68%

Dividend Payout Ratio

28.62%

Pledged Shares

Institutional Holding

ROCE (avg)

3.68%

ROE (avg)

9.27%

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

4.23

EV to EBIT

48.20

EV to EBITDA

30.22

EV to Capital Employed

2.79

EV to Sales

2.77

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

5.78%

ROE (Latest)

7.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

PRE-TAX PROFIT(Q)

Highest at JPY 2,013 MM

NET PROFIT(Q)

Highest at JPY 1,458.47 MM

EPS(Q)

Highest at JPY 31.45

-14What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.37 times

DEBT-EQUITY RATIO (HY)

Highest at 67.45 %

INTEREST(Q)

Highest at JPY 95 MM

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

Pre-Tax Profit

At JPY 2,013 MM has Grown at 122.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,458.47 MM has Grown at 167.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 2,013 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,458.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 31.45

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Here's what is not working for Matsuya Co., Ltd.

Interest

At JPY 95 MM has Grown at 25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 10.37 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 95 MM

in the last five periods and Increased by 25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 67.45 %

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

Non Operating Income

Highest at JPY 0.6 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income