Puequ Co. Ltd. (9264) 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

General Packer Co., Ltd.

Sanso Electric Co., Ltd.

Puequ Co. Ltd.

SANNO Co., Ltd.

Okano Valve Manufacturing Co., Ltd.

ONO SOKKI Co., Ltd.

HAMAI CO., LTD.

OSG Corp. Co., Ltd. (6757)

ENSHU Ltd.

Japan Ecosystem Co., Ltd.

inspec Inc.

Why is Puequ Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 6.41%

The company has been able to generate a Return on Capital Employed (avg) of 6.41% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 6.41% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Operating profit has grown by an annual rate 24.71%

The company has declared positive results in Feb'2025 after 2 consecutive negative quarters

NET SALES(HY) At JPY 5,080.06 MM has Grown at 19.58%
RAW MATERIAL COST(Y) Fallen by -21.46% (YoY)
NET PROFIT(9M) Higher at JPY 397.22 MM

With ROCE of 7.78%, it has a very attractive valuation with a 1.32 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 20.42%, its profits have fallen by -15.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Puequ Co. Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Puequ Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Puequ Co. Ltd.

20.42%

0.20

30.01%

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)

9.71%

EBIT Growth (5y)

24.71%

EBIT to Interest (avg)

14.84

Debt to EBITDA (avg)

5.60

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

0.84

Tax Ratio

48.93%

Dividend Payout Ratio

125.19%

Pledged Shares

Institutional Holding

ROCE (avg)

6.50%

ROE (avg)

8.08%

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

1.67

EV to EBIT

17.03

EV to EBITDA

12.60

EV to Capital Employed

1.32

EV to Sales

1.23

PEG Ratio

Dividend Yield

ROCE (Latest)

7.78%

ROE (Latest)

8.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

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

7What is working for the Company

NET SALES(HY)

At JPY 5,080.06 MM has Grown at 19.58%

RAW MATERIAL COST(Y)

Fallen by -21.46% (YoY

NET PROFIT(9M)

Higher at JPY 397.22 MM

CASH AND EQV(HY)

Highest at JPY 7,026.94 MM

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,596.69

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.57%

INTEREST(Q)

Highest at JPY 17.32 MM

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

Net Sales

At JPY 5,080.06 MM has Grown at 19.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 7,026.94 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Net Profit

Higher at JPY 397.22 MM

than preceding 12 month period ended May 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -21.46% (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 83.96 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

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

Interest

At JPY 17.32 MM has Grown at 36.79%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,596.69

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 17.32 MM

in the last five periods and Increased by 36.79% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 3.57%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio