Why is PAPYLESS CO., LTD. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -7.55% and Operating profit at -172.68% over the last 5 years
2
With a growth in Net Profit of 176.19%, the company declared Very Positive results in Dec 25
- The company has declared positive results in Jan 70 after 3 consecutive negative quarters
- PRE-TAX PROFIT(Q) At JPY 130 MM has Grown at 430.61%
- DEBT-EQUITY RATIO (HY) Lowest at -119.15 %
- NET PROFIT(Q) At JPY 61 MM has Grown at 117.49%
3
With ROE of -2.50%, it has a risky valuation with a 1.04 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 14.55%, its profits have fallen by -216.2%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 14.55% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
How much should you hold?
- Overall Portfolio exposure to PAPYLESS CO., LTD. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is PAPYLESS CO., LTD. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
PAPYLESS CO., LTD.
14.55%
1.23
14.42%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
-7.55%
EBIT Growth (5y)
-172.68%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-1.13
Sales to Capital Employed (avg)
1.70
Tax Ratio
21.20%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
6.92%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.04
EV to EBIT
2.80
EV to EBITDA
2.88
EV to Capital Employed
0.73
EV to Sales
-0.06
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
26.27%
ROE (Latest)
-2.50%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
16What is working for the Company
PRE-TAX PROFIT(Q)
At JPY 130 MM has Grown at 430.61%
DEBT-EQUITY RATIO
(HY)
Lowest at -119.15 %
NET PROFIT(Q)
At JPY 61 MM has Grown at 117.49%
-6What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 112.96 times
RAW MATERIAL COST(Y)
Grown by 5.31% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.77 times
Here's what is working for PAPYLESS CO., LTD.
Pre-Tax Profit
At JPY 130 MM has Grown at 430.61%
over average net sales of the previous four periods of JPY 24.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 61 MM has Grown at 117.49%
over average net sales of the previous four periods of JPY 28.05 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Debt-Equity Ratio
Lowest at -119.15 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
At JPY 3 MM has Grown at 50%
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 PAPYLESS CO., LTD.
Inventory Turnover Ratio
Lowest at 112.96 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 9.77 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 5.31% (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






