Riso Kyoiku Co., Ltd. (4714) 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

Curves Holdings Co., Ltd.

Park24 Co., Ltd.

Azoom Co. Ltd.

Kakaku.com, Inc.

Riso Kyoiku Co., Ltd.

Nagase Brothers, Inc.

Kanagawa Chuo Kotsu Co., Ltd.

Tosho Co., Ltd.

Adventure, Inc.

H.I.S. Co. Ltd.

Benesse Holdings, Inc.

Why is Riso Kyoiku Co., Ltd. ?

Weak Long Term Fundamental Strength with a 21.70% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 21.70% of over the last 5 years

Flat results in May 26

DEBT-EQUITY RATIO (HY) Highest at -45.84 %
INTEREST(Q) Highest at JPY 1.1 MM

With ROE of 14.25%, it has a very attractive valuation with a 2.66 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 -7.34%, its profits have fallen by -16.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.34% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Riso Kyoiku Co., Ltd. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

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

Is Riso Kyoiku Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Riso Kyoiku Co., Ltd.

-8.18%

-0.94

17.97%

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)

6.32%

EBIT Growth (5y)

21.70%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.78

Sales to Capital Employed (avg)

3.11

Tax Ratio

38.50%

Dividend Payout Ratio

105.35%

Pledged Shares

Institutional Holding

ROCE (avg)

114.39%

ROE (avg)

24.08%

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

2.66

EV to EBIT

9.08

EV to EBITDA

7.34

EV to Capital Employed

5.86

EV to Sales

0.72

PEG Ratio

Dividend Yield

ROCE (Latest)

64.56%

ROE (Latest)

14.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

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

6What is working for the Company

NET PROFIT(HY)

At JPY 461.55 MM has Grown at 78.89%

RAW MATERIAL COST(Y)

Fallen by -17.64% (YoY

PRE-TAX PROFIT(Q)

At JPY -208.11 MM has Grown at 65.03%

-8What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -45.84 %

INTEREST(Q)

Highest at JPY 1.1 MM

Here's what is working for Riso Kyoiku Co., Ltd.

Net Profit

At JPY 461.55 MM has Grown at 78.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY -208.11 MM has Grown at 65.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -17.64% (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 Riso Kyoiku Co., Ltd.

Interest

At JPY 1.1 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 1.1 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -45.84 %

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