Royal Holdings Co., Ltd. (8179) 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

The Monogatari Corp.

KOMEDA Holdings Co., Ltd.

Ohsho Food Service Corp.

Saizeriya Co., Ltd.

Royal Holdings Co., Ltd.

Colowide Co., Ltd.

Kura Sushi, Inc.

Yoshinoya Holdings Co., Ltd.

Ichibanya Co., Ltd.

create restaurants holdings, inc.

ATOM Corp.

Why is Royal Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.58%

The company has been able to generate a Return on Equity (avg) of 6.58% signifying low profitability per unit of shareholders funds
INTEREST(HY) At JPY 604 MM has Grown at 7.66%
CASH AND EQV(HY) Lowest at JPY 34,029 MM
PRE-TAX PROFIT(Q) Lowest at JPY 1,247 MM

With ROE of 13.44%, it has a expensive valuation with a 2.69 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 -54.61%, its profits have risen by 8.9%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -54.61% 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 hold?

Overall Portfolio exposure to Royal Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.44%

EBIT Growth (5y)

21.93%

EBIT to Interest (avg)

-1.50

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

1.99

Tax Ratio

5.44%

Dividend Payout Ratio

30.45%

Pledged Shares

Institutional Holding

ROCE (avg)

7.70%

ROE (avg)

6.58%

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

2.69

EV to EBIT

11.68

EV to EBITDA

7.23

EV to Capital Employed

2.44

EV to Sales

0.95

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

20.88%

ROE (Latest)

13.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 14,075 MM

RAW MATERIAL COST(Y)

Fallen by 0.43% (YoY

NET PROFIT(9M)

Higher at JPY 6,120.95 MM

-11What is not working for the Company

INTEREST(HY)

At JPY 604 MM has Grown at 7.66%

CASH AND EQV(HY)

Lowest at JPY 34,029 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 1,247 MM

NET PROFIT(Q)

Lowest at JPY 794.95 MM

EPS(Q)

Lowest at JPY 9.44

Here's what is working for Royal Holdings Co., Ltd.

Operating Cash Flow

Highest at JPY 14,075 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Raw Material Cost

Fallen by 0.43% (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 Royal Holdings Co., Ltd.

Net Profit

At JPY 794.95 MM has Fallen at -55.82%

over average net sales of the previous four periods of JPY 1,799.35 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 604 MM has Grown at 7.66%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 1,247 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 1,247 MM has Fallen at -30.14%

over average net sales of the previous four periods of JPY 1,785 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 794.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 9.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 34,029 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents