Recruit Holdings Co., Ltd. (6098) 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

CyberAgent, Inc.

Recruit Holdings Co., Ltd.

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Digital Garage, Inc.

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LITALICO, Inc. (7366)

Digital Arts Inc.

NEXON Co., Ltd.

Proto Corp.

Why is Recruit Holdings Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 18.71%

Healthy long term growth as Net Sales has grown by an annual rate of 8.19% and Operating profit at 17.32%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 50.22

Positive results in Jun 25

ROCE(HY) Highest at 24%
RAW MATERIAL COST(Y) Fallen by -0.9% (YoY)
OPERATING PROFIT(Q) Highest at JPY 172,686 MM

With ROE of 25.23%, it has a attractive valuation with a 7.87 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 -28.36%, its profits have risen by 15.1% ; the PEG ratio of the company is 2.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Recruit Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Recruit Holdings Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Recruit Holdings Co., Ltd.

-28.36%

519.19

46.88%

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)

8.19%

EBIT Growth (5y)

17.32%

EBIT to Interest (avg)

49.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

1.90

Tax Ratio

22.20%

Dividend Payout Ratio

8.84%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

46.08%

ROE (avg)

18.71%

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

7.87

EV to EBIT

21.63

EV to EBITDA

18.06

EV to Capital Employed

14.01

EV to Sales

3.36

PEG Ratio

2.07

Dividend Yield

ROCE (Latest)

64.77%

ROE (Latest)

25.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

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

8What is working for the Company

ROCE(HY)

Highest at 24%

RAW MATERIAL COST(Y)

Fallen by -0.9% (YoY

OPERATING PROFIT(Q)

Highest at JPY 172,686 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.65 %

PRE-TAX PROFIT(Q)

Highest at JPY 160,902 MM

NET PROFIT(Q)

Highest at JPY 120,935 MM

EPS(Q)

Highest at JPY 83.24

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -22.39 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.24%

Here's what is working for Recruit Holdings Co., Ltd.

Operating Profit

Highest at JPY 172,686 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 19.65 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 160,902 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 120,935 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 83.24

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -0.9% (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 Recruit Holdings Co., Ltd.

Debt-Equity Ratio

Highest at -22.39 %

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

Debtors Turnover Ratio

Lowest at 6.24%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio