Recovery International Co.,Ltd. () 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

Charm Care Corp.

Saint-Care Holding Corp.

CEDAR Co., Ltd.

Recovery International Co.,Ltd.

Care Twentyone Corp.

HYUGA PRIMARY CARE Co., Ltd.

Living Platform Ltd.

Care Service Co., Ltd.

Japan Hospice Holdings, Inc.

Hoshi Iryo-Sanki Co., Ltd.

SUNWELS Co., Ltd.

Why is Recovery International Co.,Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 19.18%

Healthy long term growth as Net Sales has grown by an annual rate of 98.66% and Operating profit at 57.02%
Company has very low debt and has enough cash to service the debt requirements

Negative results in Mar 26

INTEREST(HY) At JPY 1.31 MM has Grown at 2,625%
PRE-TAX PROFIT(Q) At JPY 14.07 MM has Fallen at -79.03%
NET PROFIT(Q) At JPY -3.3 MM has Fallen at -107.87%

With ROE of 16.46%, it has a fair valuation with a 2.68 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 -9.09%, its profits have fallen by -3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.09% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Recovery International Co.,Ltd. should be less than 10%
Overall Portfolio exposure to Hospital should be less than 30%

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

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

Is Recovery International Co.,Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Recovery International Co.,Ltd.

-9.09%

-0.54

26.41%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

98.66%

EBIT Growth (5y)

57.02%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

2.60

Tax Ratio

29.48%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

84.63%

ROE (avg)

19.18%

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

2.68

EV to EBIT

8.18

EV to EBITDA

7.83

EV to Capital Employed

4.56

EV to Sales

0.62

PEG Ratio

Dividend Yield

ROCE (Latest)

55.72%

ROE (Latest)

16.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

6What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 6.01 times

NET SALES(Q)

At JPY 738.8 MM has Grown at 29.09%

-20What is not working for the Company

INTEREST(HY)

At JPY 1.31 MM has Grown at 2,625%

PRE-TAX PROFIT(Q)

At JPY 14.07 MM has Fallen at -79.03%

NET PROFIT(Q)

At JPY -3.3 MM has Fallen at -107.87%

ROCE(HY)

Lowest at 11.03%

RAW MATERIAL COST(Y)

Grown by 5.54% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -41.38 %

Here's what is working for Recovery International Co.,Ltd.

Net Sales

At JPY 738.8 MM has Grown at 29.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 6.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Recovery International Co.,Ltd.

Interest

At JPY 1.31 MM has Grown at 2,625%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 14.07 MM has Fallen at -79.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -3.3 MM has Fallen at -107.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -41.38 %

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

Raw Material Cost

Grown by 5.54% (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