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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Forval RealStraight Inc.

Delivery Consulting, Inc.

JTEC Corp.

CINC Corp.

Palma Co. Ltd.

LOGLY, Inc.

Japan Reliance Service Corp.

Cacco, Inc.

DesignOne Japan, Inc.

BCC Co., Ltd.

ALiNK Internet, Inc.

Why is Palma Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -13.81% and Operating profit at -14.33% over the last 5 years

Flat results in Mar 26

CASH AND EQV(HY) Lowest at JPY 4,026.57 MM
DEBT-EQUITY RATIO (HY) Highest at -38.8 %
INVENTORY TURNOVER RATIO(HY) Lowest at 1.32 times

With ROE of 5.40%, it has a very expensive valuation with a 1.55 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 6.55%, its profits have risen by 19.6% ; the PEG ratio of the company is 1.5

Underperformed the market in the last 1 year

The stock has generated a return of 6.55% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 81.96%

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, Low Return

Absolute

Risk Adjusted

Volatility

Palma Co. Ltd.

6.72%

2.45

23.68%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-13.81%

EBIT Growth (5y)

-14.33%

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

66.28%

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

1.55

EV to EBIT

16.26

EV to EBITDA

14.38

EV to Capital Employed

2.07

EV to Sales

1.09

PEG Ratio

1.47

Dividend Yield

ROCE (Latest)

12.71%

ROE (Latest)

5.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

14What is working for the Company

ROCE(HY)

Highest at 6.46%

PRE-TAX PROFIT(Q)

At JPY 57.96 MM has Grown at 190.1%

NET PROFIT(Q)

At JPY 37.47 MM has Grown at 202.39%

RAW MATERIAL COST(Y)

Fallen by -11.74% (YoY

-16What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 4,026.57 MM

DEBT-EQUITY RATIO (HY)

Highest at -38.8 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.32 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.04 times

INTEREST(Q)

Highest at JPY 3.21 MM

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

Pre-Tax Profit

At JPY 57.96 MM has Grown at 190.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 37.47 MM has Grown at 202.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -11.74% (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 Palma Co. Ltd.

Interest

At JPY 3.21 MM has Grown at 10.9%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 3.21 MM

in the last five periods and Increased by 10.9% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 4,026.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -38.8 %

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

Inventory Turnover Ratio

Lowest at 1.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.04 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio