RenetJapanGroup, Inc. (3556) 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

Jade Group, Inc.

Kurashicom, Inc.

Senshukai Co., Ltd.

Raccoon Holdings, Inc.

Syuppin Co., Ltd.

RenetJapanGroup, Inc.

Kakuyasu Group Co., Ltd.

Mandarake, Inc.

Hamee Corp.

BEENOS, Inc.

PATH Corp.

Why is RenetJapanGroup, Inc. ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

High Debt Company with a Debt to Equity ratio (avg) at times

Positive results in Jun 25

ROCE(HY) Highest at 7.37%
DEBTORS TURNOVER RATIO(HY) Highest at 2.87%
PRE-TAX PROFIT(Q) At JPY 49.51 MM has Grown at 119.88%

With ROCE of -8.33%, it has a risky valuation with a 3.28 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 350.00%, its profits have fallen by -32%

Market Beating performance in long term as well as near term

Along with generating 350.00% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to RenetJapanGroup, Inc. should be less than 10%
Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

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

Is RenetJapanGroup, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

RenetJapanGroup, Inc.

-100.0%

4.13

57.27%

Japan Nikkei 225

38.59%

1.45

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.37%

EBIT Growth (5y)

-201.86%

EBIT to Interest (avg)

4.57

Debt to EBITDA (avg)

9.81

Net Debt to Equity (avg)

3.30

Sales to Capital Employed (avg)

2.14

Tax Ratio

5.30%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.29%

ROE (avg)

10.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

10.81

EV to EBIT

-39.39

EV to EBITDA

76.32

EV to Capital Employed

3.28

EV to Sales

0.86

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.33%

ROE (Latest)

-141.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

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

17What is working for the Company

ROCE(HY)

Highest at 7.37%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.87%

PRE-TAX PROFIT(Q)

At JPY 49.51 MM has Grown at 119.88%

RAW MATERIAL COST(Y)

Fallen by -2.36% (YoY

NET PROFIT(Q)

At JPY 25.57 MM has Grown at 110.57%

-12What is not working for the Company

NET SALES(HY)

At JPY 5,213.97 MM has Grown at -13.81%

INTEREST(HY)

At JPY 40.49 MM has Grown at 15.47%

CASH AND EQV(HY)

Lowest at JPY 1,144.01 MM

Here's what is working for RenetJapanGroup, Inc.

Pre-Tax Profit

At JPY 49.51 MM has Grown at 119.88%

over average net sales of the previous four periods of JPY -249 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Highest at 2.87% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

At JPY 25.57 MM has Grown at 110.57%

over average net sales of the previous four periods of JPY -241.92 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -2.36% (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 RenetJapanGroup, Inc.

Net Sales

At JPY 5,213.97 MM has Grown at -13.81%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 40.49 MM has Grown at 15.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 1,144.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents