Palma Co. Ltd. (3461) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Forval RealStraight Inc.

Delivery Consulting, Inc.

JTEC Corp.

Cacco, Inc.

Japan Reliance Service Corp.

LOGLY, Inc.

Palma Co. Ltd.

DesignOne Japan, Inc.

BCC Co., Ltd.

ALiNK Internet, Inc.

CINC Corp.

Why is Palma Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -8.98% and Operating profit at -22.01% over the last 5 years

Negative results in Jun 25

NET SALES(Q) At JPY 548.89 MM has Fallen at -53.91%
INTEREST(Q) At JPY 2.74 MM has Grown at 14.76%
PRE-TAX PROFIT(Q) At JPY 48.35 MM has Fallen at -59.54%

With ROE of 4.79%, it has a expensive valuation with a 1.50 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 17.27%, its profits have fallen by -12.6%

Underperformed the market in the last 1 year

The stock has generated a return of 17.27% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

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 Miscellaneous)

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

Is Palma Co. Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Palma Co. Ltd.

17.27%

1.41

33.74%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.98%

EBIT Growth (5y)

-22.01%

EBIT to Interest (avg)

9.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

0.80

Tax Ratio

34.56%

Dividend Payout Ratio

50.15%

Pledged Shares

Institutional Holding

ROCE (avg)

13.63%

ROE (avg)

4.96%

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

1.50

EV to EBIT

16.60

EV to EBITDA

14.94

EV to Capital Employed

2.11

EV to Sales

0.78

PEG Ratio

Dividend Yield

ROCE (Latest)

12.74%

ROE (Latest)

4.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -81.26% (YoY

-25What is not working for the Company

NET SALES(Q)

At JPY 548.89 MM has Fallen at -53.91%

INTEREST(Q)

At JPY 2.74 MM has Grown at 14.76%

PRE-TAX PROFIT(Q)

At JPY 48.35 MM has Fallen at -59.54%

NET PROFIT(Q)

At JPY 29.59 MM has Fallen at -63.96%

DEBT-EQUITY RATIO (HY)

Highest at -48.27 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.67%

Here's what is working for Palma Co. Ltd.

Raw Material Cost

Fallen by -81.26% (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 5.84 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 5.84 MM has Grown at 40.25%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Palma Co. Ltd.

Net Sales

At JPY 548.89 MM has Fallen at -53.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 2.74 MM has Grown at 14.76%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 48.35 MM has Fallen at -59.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 29.59 MM has Fallen at -63.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 2.74 MM

in the last five periods and Increased by 14.76% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -48.27 %

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 6.67%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio