Regal Corp. (7938) 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

Uniform Next Co., Ltd.

Konaka Co., Ltd.

Baroque Japan Ltd.

MRK Holdings, Inc.

Regal Corp.

TOKYO BASE Co., Ltd.

WA, Inc. (Japan)

CROOZ, Inc.

Haruyama Holdings, Inc.

GFOOT Co., Ltd.

RIGHT ON Co., Ltd.

Why is Regal Corp. ?

Poor Management Efficiency with a low ROCE of 1.66%

The company has been able to generate a Return on Capital Employed (avg) of 1.66% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -3.70

Poor long term growth as Net Sales has grown by an annual rate of 1.45% and Operating profit at 13.61% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -3.70
The company has been able to generate a Return on Equity (avg) of 3.10% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.45% and Operating profit at 13.61% over the last 5 years

Positive results in Mar 26

NET SALES(Q) At JPY 7,013 MM has Grown at 22.76%
PRE-TAX PROFIT(Q) Highest at JPY 1,007 MM
NET PROFIT(Q) Highest at JPY 934.85 MM

With ROCE of -1.15%, it has a fair valuation with a 0.69 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 -14.11%, its profits have risen by 24.3% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Regal Corp. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Regal Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Regal Corp.

-14.11%

-1.79

8.65%

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)

1.45%

EBIT Growth (5y)

13.61%

EBIT to Interest (avg)

-3.70

Debt to EBITDA (avg)

7.03

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.05

Tax Ratio

11.73%

Dividend Payout Ratio

34.21%

Pledged Shares

Institutional Holding

ROCE (avg)

1.66%

ROE (avg)

3.10%

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

0.55

EV to EBIT

-60.47

EV to EBITDA

61.22

EV to Capital Employed

0.69

EV to Sales

0.64

PEG Ratio

0.61

Dividend Yield

ROCE (Latest)

-1.15%

ROE (Latest)

3.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

16What is working for the Company

NET SALES(Q)

At JPY 7,013 MM has Grown at 22.76%

PRE-TAX PROFIT(Q)

Highest at JPY 1,007 MM

NET PROFIT(Q)

Highest at JPY 934.85 MM

-14What is not working for the Company

ROCE(HY)

Lowest at 1.85%

CASH AND EQV(HY)

Lowest at JPY 6,400 MM

INTEREST(Q)

Highest at JPY 35 MM

Here's what is working for Regal Corp.

Pre-Tax Profit

At JPY 1,007 MM has Grown at 539.37%

over average net sales of the previous four periods of JPY 157.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 934.85 MM has Grown at 606.16%

over average net sales of the previous four periods of JPY 132.38 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 7,013 MM has Grown at 22.76%

over average net sales of the previous four periods of JPY 5,712.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 1,007 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 934.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Depreciation

Highest at JPY 133 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 Regal Corp.

Interest

At JPY 35 MM has Grown at 20.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 35 MM

in the last five periods and Increased by 20.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 6,400 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents