PA Co., Ltd. (4766) 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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Why is PA Co., Ltd. ?

Poor Management Efficiency with a low ROE of 9.19%

The company has been able to generate a Return on Equity (avg) of 9.19% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -4.47

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -4.47
The company has been able to generate a Return on Equity (avg) of 9.19% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.59% over the last 5 years

Flat results in Mar 26

DEBTORS TURNOVER RATIO(HY) Lowest at 9.06 times
RAW MATERIAL COST(Y) Grown by 8.6% (YoY)
CASH AND EQV(HY) Lowest at JPY 1,604.67 MM

With ROE of 25.73%, it has a attractive valuation with a 4.49 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 -34.93%, its profits have risen by 64.3% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to PA Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is PA Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

PA Co., Ltd.

-100.0%

-1.70

24.16%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.59%

EBIT Growth (5y)

20.32%

EBIT to Interest (avg)

10.16

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

1.80

Tax Ratio

16.61%

Dividend Payout Ratio

58.32%

Pledged Shares

Institutional Holding

ROCE (avg)

24.56%

ROE (avg)

9.19%

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

4.49

EV to EBIT

17.43

EV to EBITDA

14.58

EV to Capital Employed

5.30

EV to Sales

0.94

PEG Ratio

0.27

Dividend Yield

ROCE (Latest)

30.43%

ROE (Latest)

25.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

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

8What is working for the Company

NET PROFIT(Q)

At JPY 18.98 MM has Grown at 270.88%

ROCE(HY)

Highest at 25.63%

INVENTORY TURNOVER RATIO(HY)

Highest at 4,108.55 times

NET SALES(Q)

Highest at JPY 535 MM

-16What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.06 times

RAW MATERIAL COST(Y)

Grown by 8.6% (YoY

CASH AND EQV(HY)

Lowest at JPY 1,604.67 MM

DEBT-EQUITY RATIO (HY)

Highest at -18.86 %

INTEREST(Q)

Highest at JPY 2.27 MM

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

Net Profit

At JPY 18.98 MM has Grown at 270.88%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 4,108.55 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 535 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

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

Interest

At JPY 2.27 MM has Grown at 28.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 9.06 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at JPY 2.27 MM

in the last five periods and Increased by 28.01% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 1,604.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -18.86 %

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

Raw Material Cost

Grown by 8.6% (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