RESOL HOLDINGS Co., Ltd. (5261) 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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RESOL HOLDINGS Co., Ltd.

Seibu Holdings, Inc.

Why is RESOL HOLDINGS Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.33%

The company has been able to generate a Return on Capital Employed (avg) of 5.33% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 7.90% and Operating profit at 21.32% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.70% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

PRE-TAX PROFIT(Q) At JPY 130 MM has Fallen at -81.82%
NET PROFIT(Q) At JPY -176.35 MM has Fallen at -127.06%
INTEREST(HY) At JPY 103 MM has Grown at 5.1%

With ROE of 14.07%, it has a expensive valuation with a 2.54 Price to Book Value

Over the past year, while the stock has generated a return of 44.64%, its profits have risen by 20% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 44.64% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

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 Hotels & Resorts)

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

Is RESOL HOLDINGS Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

RESOL HOLDINGS Co., Ltd.

44.05%

1.84

27.21%

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)

7.90%

EBIT Growth (5y)

21.32%

EBIT to Interest (avg)

7.85

Debt to EBITDA (avg)

5.58

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

0.90

Tax Ratio

15.40%

Dividend Payout Ratio

28.49%

Pledged Shares

Institutional Holding

ROCE (avg)

5.33%

ROE (avg)

5.70%

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

2.54

EV to EBIT

17.20

EV to EBITDA

12.29

EV to Capital Employed

2.06

EV to Sales

1.83

PEG Ratio

0.90

Dividend Yield

ROCE (Latest)

12.00%

ROE (Latest)

14.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

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

8What is working for the Company

ROCE(HY)

Highest at 15.72%

DEBT-EQUITY RATIO (HY)

Lowest at 51.61 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.77 times

RAW MATERIAL COST(Y)

Fallen by 0.13% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 15.05

-12What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 130 MM has Fallen at -81.82%

NET PROFIT(Q)

At JPY -176.35 MM has Fallen at -127.06%

INTEREST(HY)

At JPY 103 MM has Grown at 5.1%

NET SALES(Q)

At JPY 6,760 MM has Fallen at -10.51%

Here's what is working for RESOL HOLDINGS Co., Ltd.

Debt-Equity Ratio

Lowest at 51.61 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.77 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 15.05

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 0.13% (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 331 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 RESOL HOLDINGS Co., Ltd.

Pre-Tax Profit

At JPY 130 MM has Fallen at -81.82%

over average net sales of the previous four periods of JPY 715 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -176.35 MM has Fallen at -127.06%

over average net sales of the previous four periods of JPY 651.71 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 6,760 MM has Fallen at -10.51%

over average net sales of the previous four periods of JPY 7,553.5 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 103 MM has Grown at 5.1%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)