ScoreWhy is Rhythm Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 2.66%
- The company has been able to generate a Return on Equity (avg) of 2.66% signifying low profitability per unit of shareholders funds
2
Company has a low Debt to Equity ratio (avg) at times
3
Low Debt Company with Strong Long Term Fundamental Strength
4
Flat results in Jun 25
- INTEREST(9M) At JPY 51 MM has Grown at 27.5%
- NET SALES(HY) At JPY 15,662 MM has Grown at -9.55%
5
With ROE of 2.74%, it has a very attractive valuation with a 0.98 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 -2.40%, its profits have fallen by -18%
- At the current price, the company has a high dividend yield of 0
6
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 29.35% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.40% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Rhythm Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Rhythm Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Rhythm Co., Ltd.
-4.75%
-0.08
39.87%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.78%
EBIT Growth (5y)
40.61%
EBIT to Interest (avg)
16.78
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.19
Sales to Capital Employed (avg)
0.86
Tax Ratio
37.74%
Dividend Payout Ratio
165.24%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.08%
ROE (avg)
2.66%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
Price to Book Value
0.98
EV to EBIT
30.24
EV to EBITDA
11.47
EV to Capital Employed
0.97
EV to Sales
0.76
PEG Ratio
NA
Dividend Yield
0.01%
ROCE (Latest)
3.22%
ROE (Latest)
2.74%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend25What is working for the Company
NET PROFIT(HY)
At JPY 1,790.08 MM has Grown at 114.35%
ROCE(HY)
Highest at 6.46%
INTEREST COVERAGE RATIO(Q)
Highest at 5,317.65
RAW MATERIAL COST(Y)
Fallen by -20.81% (YoY
CASH AND EQV(HY)
Highest at JPY 27,025 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 3.29%
OPERATING PROFIT(Q)
Highest at JPY 904 MM
OPERATING PROFIT MARGIN(Q)
Highest at 10.79 %
PRE-TAX PROFIT(Q)
Highest at JPY 1,450 MM
EPS(Q)
Highest at JPY 184.7
-8What is not working for the Company
INTEREST(9M)
At JPY 51 MM has Grown at 27.5%
NET SALES(HY)
At JPY 15,662 MM has Grown at -9.55%
Here's what is working for Rhythm Co., Ltd.
Pre-Tax Profit
At JPY 1,450 MM has Grown at 333.48%
over average net sales of the previous four periods of JPY 334.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 1,475 MM has Grown at 586.6%
over average net sales of the previous four periods of JPY 214.83 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Interest Coverage Ratio
Highest at 5,317.65
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at JPY 904 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 10.79 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 1,450 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 1,475 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 184.7
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 27,025 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 3.29%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -20.81% (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 Rhythm Co., Ltd.
Net Sales
At JPY 15,662 MM has Grown at -9.55%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
At JPY 35 MM has Grown at 6.06%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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