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

MRK Holdings, Inc.

Uniform Next Co., Ltd.

Konaka Co., Ltd.

TOKYO BASE Co., Ltd.

Baroque Japan Ltd.

WA, Inc. (Japan)

Regal Corp.

CROOZ, Inc.

GFOOT Co., Ltd.

Haruyama Holdings, Inc.

RIGHT ON Co., Ltd.

Why is Regal Corp. ?

Poor Management Efficiency with a low ROCE of 1.77%

The company has been able to generate a Return on Capital Employed (avg) of 1.77% 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 -3.49

Poor long term growth as Net Sales has grown by an annual rate of -4.17% and Operating profit at 21.78% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -3.49
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 -4.17% and Operating profit at 21.78% over the last 5 years

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Regal Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Regal Corp.

-7.67%

-0.03

18.82%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.17%

EBIT Growth (5y)

21.78%

EBIT to Interest (avg)

-3.70

Debt to EBITDA (avg)

7.03

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.06

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

0.63

EV to EBIT

27.15

EV to EBITDA

14.73

EV to Capital Employed

0.74

EV to Sales

0.57

PEG Ratio

0.20

Dividend Yield

0.02%

ROCE (Latest)

2.72%

ROE (Latest)

5.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bullish

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

4What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 307 MM has Grown at 137.52%

NET PROFIT(Q)

At JPY 265 MM has Grown at 144.5%

-15What is not working for the Company

NET PROFIT(9M)

At JPY -54 MM has Grown at -154.55%

INTEREST(HY)

At JPY 58 MM has Grown at 26.09%

CASH AND EQV(HY)

Lowest at JPY 5,571 MM

DEBT-EQUITY RATIO (HY)

Highest at 47.53 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.54 times

Here's what is working for Regal Corp.

Pre-Tax Profit

At JPY 307 MM has Grown at 137.52%

over average net sales of the previous four periods of JPY 129.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 265 MM has Grown at 144.5%

over average net sales of the previous four periods of JPY 108.38 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Depreciation

Highest at JPY 130 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 58 MM has Grown at 26.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 5,571 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 47.53 %

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

Inventory Turnover Ratio

Lowest at 1.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio