Why is PRAP Japan, Inc. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 4.70% and Operating profit at 2.96% over the last 5 years
3
The company declared positive results in Feb'25 after negative results in Nov'24
- ROCE(HY) Highest at 9.63%
- NET PROFIT(9M) Higher at JPY 358.17 MM
4
With ROE of 7.61%, it has a very attractive valuation with a 0.92 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 15.63%, its profits have risen by 12.9% ; the PEG ratio of the company is 0.9
5
Underperformed the market in the last 1 year
- The stock has generated a return of 15.63% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.30%
How much should you hold?
- Overall Portfolio exposure to PRAP Japan, Inc. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is PRAP Japan, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
PRAP Japan, Inc.
15.63%
0.35
19.76%
Japan Nikkei 225
40.96%
1.35
28.28%
Quality key factors
Factor
Value
Sales Growth (5y)
4.70%
EBIT Growth (5y)
2.96%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.81
Sales to Capital Employed (avg)
1.36
Tax Ratio
33.75%
Dividend Payout Ratio
38.15%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
63.41%
ROE (avg)
5.85%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.92
EV to EBIT
0.91
EV to EBITDA
0.70
EV to Capital Employed
0.60
EV to Sales
0.08
PEG Ratio
0.94
Dividend Yield
NA
ROCE (Latest)
66.56%
ROE (Latest)
7.61%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
5What is working for the Company
ROCE(HY)
Highest at 9.63%
NET PROFIT(9M)
Higher at JPY 358.17 MM
-12What is not working for the Company
NET PROFIT(Q)
At JPY 40 MM has Fallen at -66.4%
NET SALES(Q)
At JPY 1,651 MM has Fallen at -10.61%
RAW MATERIAL COST(Y)
Grown by 7.13% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -79.17 %
OPERATING PROFIT(Q)
Lowest at JPY 137 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 8.3 %
PRE-TAX PROFIT(Q)
Lowest at JPY 98 MM
Here's what is not working for PRAP Japan, Inc.
Net Profit
At JPY 40 MM has Fallen at -66.4%
over average net sales of the previous four periods of JPY 119.04 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Net Sales
At JPY 1,651 MM has Fallen at -10.61%
over average net sales of the previous four periods of JPY 1,847.03 MMMOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 98 MM has Fallen at -46.45%
over average net sales of the previous four periods of JPY 183.02 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Operating Profit
Lowest at JPY 137 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 8.3 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 98 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Debt-Equity Ratio
Highest at -79.17 %
in the last five Semi-Annual periodsMOJO 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 7.13% (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






