Onward Holdings Co., Ltd. (8016) 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

ASICS Corp.

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Shoei Co. Ltd. (7839)

GOLDWIN INC.

Mizuno Corp.

Ryohin Keikaku Co., Ltd.

Gunze Ltd.

Wacoal Holdings Corp.

Onward Holdings Co., Ltd.

TSI Holdings Co., Ltd.

Descente Ltd.

Why is Onward Holdings Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 3.49% 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 5.47% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Operating profit has grown by an annual rate 21.72%

Flat results in Feb 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DIVIDEND PER SHARE(HY) Lowest at JPY 13.8
INTEREST(Q) Highest at JPY 144 MM

With ROCE of 9.46%, it has a very attractive valuation with a 1.17 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 22.03%, its profits have fallen by -0.3% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 22.03% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Onward Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Onward Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Onward Holdings Co., Ltd.

20.81%

0.61

22.69%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.49%

EBIT Growth (5y)

21.72%

EBIT to Interest (avg)

4.63

Debt to EBITDA (avg)

2.21

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

1.63

Tax Ratio

20.69%

Dividend Payout Ratio

40.40%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

5.47%

ROE (avg)

10.39%

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

1.23

EV to EBIT

12.38

EV to EBITDA

8.24

EV to Capital Employed

1.17

EV to Sales

0.59

PEG Ratio

0.83

Dividend Yield

0.15%

ROCE (Latest)

9.46%

ROE (Latest)

13.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

4What is working for the Company

ROCE(HY)

Highest at 11.35%

RAW MATERIAL COST(Y)

Fallen by -1.66% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 31.48 %

-12What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at JPY 13.8

INTEREST(Q)

Highest at JPY 144 MM

Here's what is working for Onward Holdings Co., Ltd.

Debt-Equity Ratio

Lowest at 31.48 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.66% (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 Onward Holdings Co., Ltd.

Interest

At JPY 144 MM has Grown at 12.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 144 MM

in the last five periods and Increased by 12.5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend per share

Lowest at JPY 13.8

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)