Relo Group, Inc. (8876) 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

Tokyu Fudosan Holdings Corp.

Daito Trust Construction Co. Ltd.

Sekisui House, Ltd.

Relo Group, Inc.

Pan Pacific International Holdings Corp.

Nomura Real Estate Holdings, Inc.

AEON Mall Co., Ltd.

Hulic Co., Ltd.

Mitsubishi Estate Co., Ltd.

Sumitomo Realty & Development Co., Ltd.

Tokyo Tatemono Co., Ltd.

Why is Relo Group, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 38.96%

Poor long term growth as Net Sales has grown by an annual rate of -14.50%

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at JPY 25,077 MM
ROCE(HY) Highest at 38.41%
RAW MATERIAL COST(Y) Fallen by -1.5% (YoY)

With ROE of 64.22%, it has a very attractive valuation with a 3.74 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 -11.54%, its profits have risen by 261% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.54% 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 Relo Group, Inc. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Relo Group, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Relo Group, Inc.

-11.54%

-0.00

26.38%

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)

-14.50%

EBIT Growth (5y)

11.23%

EBIT to Interest (avg)

33.49

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

29.73%

Dividend Payout Ratio

13.25%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

352.71%

ROE (avg)

38.96%

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

3.74

EV to EBIT

6.29

EV to EBITDA

4.00

EV to Capital Employed

45.81

EV to Sales

1.34

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

728.70%

ROE (Latest)

64.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 25,077 MM

ROCE(HY)

Highest at 38.41%

RAW MATERIAL COST(Y)

Fallen by -1.5% (YoY

CASH AND EQV(HY)

Highest at JPY 123,049 MM

-17What is not working for the Company

NET PROFIT(Q)

At JPY 4,415 MM has Fallen at -59.23%

INTEREST COVERAGE RATIO(Q)

Lowest at 6,430

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.14%

INTEREST(Q)

Highest at JPY 170 MM

Here's what is working for Relo Group, Inc.

Operating Cash Flow

Highest at JPY 25,077 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 123,049 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.5% (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

Depreciation

Highest at JPY 4,514 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 Relo Group, Inc.

Net Profit

At JPY 4,415 MM has Fallen at -59.23%

over average net sales of the previous four periods of JPY 10,829.5 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 170 MM has Grown at 54.55%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 6,430

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 170 MM

in the last five periods and Increased by 54.55% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 10.14%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio