ScoreWhy is Recomm Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 4.14%
- The company has been able to generate a Return on Equity (avg) of 4.14% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 28.46% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 4.14% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Operating profit has grown by an annual rate 28.46% of over the last 5 years
4
The company has declared positive results in Jun'2026 after 2 consecutive negative quarters
- ROCE(HY) Highest at 4.23%
- RAW MATERIAL COST(Y) Fallen by 0% (YoY)
- NET SALES(Q) Highest at JPY 5,469.8 MM
5
With ROE of 2.34%, it has a fair valuation with a 1.05 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 -42.14%, its profits have fallen by -36.3%
6
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 43.58% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -42.14% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Recomm Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Recomm Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Recomm Co., Ltd.
-29.01%
0.10
56.09%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.52%
EBIT Growth (5y)
28.46%
EBIT to Interest (avg)
4.00
Debt to EBITDA (avg)
2.88
Net Debt to Equity (avg)
0.44
Sales to Capital Employed (avg)
1.28
Tax Ratio
34.18%
Dividend Payout Ratio
41.12%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.07%
ROE (avg)
4.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
45
Industry P/E
Price to Book Value
1.05
EV to EBIT
41.09
EV to EBITDA
17.84
EV to Capital Employed
1.03
EV to Sales
0.70
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.51%
ROE (Latest)
2.34%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend25What is working for the Company
ROCE(HY)
Highest at 4.23%
RAW MATERIAL COST(Y)
Fallen by 0% (YoY
NET SALES(Q)
Highest at JPY 5,469.8 MM
OPERATING PROFIT(Q)
Highest at JPY 430.67 MM
PRE-TAX PROFIT(Q)
Highest at JPY 425.7 MM
NET PROFIT(Q)
Highest at JPY 202.42 MM
EPS(Q)
Highest at JPY 2.51
-14What is not working for the Company
INTEREST(HY)
At JPY 57.92 MM has Grown at 55.19%
OPERATING CASH FLOW(Y)
Lowest at JPY -907.18 MM
DEBT-EQUITY RATIO
(HY)
Highest at 83.42 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.47 times
Here's what is working for Recomm Co., Ltd.
Pre-Tax Profit
At JPY 425.7 MM has Grown at 500.83%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 202.42 MM has Grown at 403.47%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Sales
At JPY 5,469.8 MM has Grown at 66.29%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
Highest at JPY 5,469.8 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 430.67 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 425.7 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 202.42 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 2.51
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by 0% (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 Recomm Co., Ltd.
Interest
At JPY 57.92 MM has Grown at 55.19%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Cash Flow
Lowest at JPY -907.18 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Debt-Equity Ratio
Highest at 83.42 % and Grown
In each half year 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
Debtors Turnover Ratio
Lowest at 4.47 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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