Renaissance, Inc. (Japan) (2378) 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

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Renaissance, Inc. (Japan)

QB Net Holdings Co., Ltd.

Why is Renaissance, Inc. (Japan) ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 15.05% and Operating profit at 18.83% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.93% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 15.05% and Operating profit at 18.83% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 438.83 MM has Grown at 13.8%
ROCE(HY) Lowest at -19.32%
DEBT-EQUITY RATIO (HY) Highest at 229.4 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -13.74%, its profits have risen by 47% ; the PEG ratio of the company is 0.7

Below par performance in long term as well as near term

Along with generating -13.74% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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 Tour, Travel Related Services)

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

Is Renaissance, Inc. (Japan) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Renaissance, Inc. (Japan)

-13.74%

0.47

18.75%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.05%

EBIT Growth (5y)

18.83%

EBIT to Interest (avg)

2.10

Debt to EBITDA (avg)

1.58

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

2.22

Tax Ratio

7.44%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.33%

ROE (avg)

3.93%

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

1.71

EV to EBIT

25.66

EV to EBITDA

6.41

EV to Capital Employed

1.42

EV to Sales

0.46

PEG Ratio

0.74

Dividend Yield

ROCE (Latest)

5.55%

ROE (Latest)

6.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

10What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 437.62 MM has Grown at 311.55%

RAW MATERIAL COST(Y)

Fallen by -30.76% (YoY

CASH AND EQV(HY)

Highest at JPY 16,942.11 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 27.57

NET SALES(Q)

Highest at JPY 16,746.57 MM

NET PROFIT(Q)

At JPY 387.7 MM has Grown at 83.06%

-10What is not working for the Company

INTEREST(HY)

At JPY 438.83 MM has Grown at 13.8%

ROCE(HY)

Lowest at -19.32%

DEBT-EQUITY RATIO (HY)

Highest at 229.4 %

EPS(Q)

Lowest at JPY -139.04

Here's what is working for Renaissance, Inc. (Japan)

Pre-Tax Profit

At JPY 437.62 MM has Grown at 311.55%

over average net sales of the previous four periods of JPY 106.34 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

Highest at JPY 16,746.57 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

At JPY 387.7 MM has Grown at 83.06%

over average net sales of the previous four periods of JPY 211.79 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 16,942.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 27.57

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -30.76% (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 896.72 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 Renaissance, Inc. (Japan)

Interest

At JPY 438.83 MM has Grown at 13.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -139.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 229.4 %

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