Palemo Holdings Co., Ltd. (2778) 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

Global Style Co., Ltd.

KAITORI OKOKU CO., LTD.

Palemo Holdings Co., Ltd.

Regal Corp.

Cox Co., Ltd.

ICHIKURA Co., Ltd.

NCXX Group, Inc.

Nihonwasou Holdings, Inc.

MAC HOUSE CO., LTD.

Hiraki Co., Ltd.

Dream Vision Co., Ltd.

Why is Palemo Holdings Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -6.21% and Operating profit at 16.71% over the last 5 years
The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -6.21% and Operating profit at 16.71% over the last 5 years

With a growth in Net Sales of 13.99%, the company declared Very Positive results in Feb 26

PRE-TAX PROFIT(Q) At JPY 63.43 MM has Grown at 222.76%
NET PROFIT(Q) At JPY 65.45 MM has Grown at 1,931.74%
RAW MATERIAL COST(Y) Fallen by -1.1% (YoY)

With ROCE of 7.99%, it has a risky 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 -21.66%, its profits have fallen by -115.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.66% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Palemo 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 Palemo Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Palemo Holdings Co., Ltd.

-100.0%

-0.82

35.18%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.21%

EBIT Growth (5y)

16.71%

EBIT to Interest (avg)

-5.94

Debt to EBITDA (avg)

0.84

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

4.00

Tax Ratio

12.33%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.33%

ROE (avg)

11.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.97

EV to EBIT

12.15

EV to EBITDA

6.08

EV to Capital Employed

0.97

EV to Sales

0.12

PEG Ratio

Dividend Yield

ROCE (Latest)

7.99%

ROE (Latest)

-0.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

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

14What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 63.43 MM has Grown at 222.76%

NET PROFIT(Q)

At JPY 65.45 MM has Grown at 1,931.74%

RAW MATERIAL COST(Y)

Fallen by -1.1% (YoY

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.38 times

CASH AND EQV(HY)

Lowest at JPY 2,852.88 MM

DEBT-EQUITY RATIO (HY)

Highest at 23.21 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 67.95 times

INTEREST(Q)

Highest at JPY 6.11 MM

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

Pre-Tax Profit

At JPY 63.43 MM has Grown at 222.76%

over average net sales of the previous four periods of JPY 19.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 65.45 MM has Grown at 1,931.74%

over average net sales of the previous four periods of JPY -3.57 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -1.1% (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 Palemo Holdings Co., Ltd.

Inventory Turnover Ratio

Lowest at 4.38 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 6.11 MM

in the last five periods and Increased by 7.62% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 2,852.88 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 23.21 %

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

Debtors Turnover Ratio

Lowest at 67.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio