REVOLUTION CO., LTD. (Yamaguchi) (8894) 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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REVOLUTION CO., LTD. (Yamaguchi)

Why is REVOLUTION CO., LTD. (Yamaguchi) ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 2.69%

Poor long term growth as Operating profit has grown by an annual rate -11.70% of over the last 5 years
The company is Net-Debt Free

Flat results in Apr 26

INTEREST(9M) At JPY 242.75 MM has Grown at 47.38%
PRE-TAX PROFIT(Q) At JPY -234 MM has Fallen at -234.35%
NET PROFIT(Q) At JPY -282 MM has Fallen at -2,222.71%

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 -64.52%, its profits have risen by 95.2%

Below par performance in long term as well as near term

Along with generating -64.52% 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 Furniture, Home Furnishing)

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

Is REVOLUTION CO., LTD. (Yamaguchi) for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

REVOLUTION CO., LTD. (Yamaguchi)

-64.52%

-1.11

81.60%

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)

106.73%

EBIT Growth (5y)

-11.70%

EBIT to Interest (avg)

-14.33

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.86

Sales to Capital Employed (avg)

1.40

Tax Ratio

12.86%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.04%

ROE (avg)

2.69%

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

9.04

EV to EBIT

-20.81

EV to EBITDA

-24.05

EV to Capital Employed

1.69

EV to Sales

0.50

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.10%

ROE (Latest)

-7.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

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

13What is working for the Company

NET SALES(9M)

At JPY 21,947.38 MM has Grown at 30.94%

NET PROFIT(HY)

Higher at JPY -857 MM

RAW MATERIAL COST(Y)

Fallen by -340.22% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 17.99 %

-19What is not working for the Company

INTEREST(9M)

At JPY 242.75 MM has Grown at 47.38%

PRE-TAX PROFIT(Q)

At JPY -234 MM has Fallen at -234.35%

NET PROFIT(Q)

At JPY -282 MM has Fallen at -2,222.71%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.06 times

DEBT-EQUITY RATIO (HY)

Highest at 1,022.52 %

NET SALES(Q)

Lowest at JPY 5,799 MM

Here's what is working for REVOLUTION CO., LTD. (Yamaguchi)

Operating Profit Margin

Highest at 17.99 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -340.22% (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 REVOLUTION CO., LTD. (Yamaguchi)

Interest

At JPY 242.75 MM has Grown at 47.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 5,799 MM has Fallen at -34.21%

over average net sales of the previous four periods of JPY 8,814.09 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -234 MM has Fallen at -234.35%

over average net sales of the previous four periods of JPY -69.99 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -282 MM has Fallen at -2,222.71%

over average net sales of the previous four periods of JPY -12.14 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 6.06 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at JPY 5,799 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Debt-Equity Ratio

Highest at 1,022.52 %

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