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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Monogatari Corp.

Ohsho Food Service Corp.

KOMEDA Holdings Co., Ltd.

Saizeriya Co., Ltd.

Royal Holdings Co., Ltd.

Kura Sushi, Inc.

Colowide Co., Ltd.

create restaurants holdings, inc.

Ichibanya Co., Ltd.

Yoshinoya Holdings Co., Ltd.

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

Flat results in Jun 25

INTEREST(Q) At JPY 326 MM has Grown at 16.85%
INTEREST COVERAGE RATIO(Q) Lowest at 1,070.55
OPERATING PROFIT MARGIN(Q) Lowest at 8.63 %

With ROE of 12.69%, it has a attractive valuation with a 2.55 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 -47.57%, its profits have risen by 21.4% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -47.57% 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 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)

2.78%

EBIT Growth (5y)

39.30%

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)

1.93

Tax Ratio

5.44%

Dividend Payout Ratio

26.58%

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

2.55

EV to EBIT

17.99

EV to EBITDA

9.13

EV to Capital Employed

2.45

EV to Sales

0.84

PEG Ratio

0.94

Dividend Yield

0.06%

ROCE (Latest)

13.63%

ROE (Latest)

12.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 12,699 MM

RAW MATERIAL COST(Y)

Fallen by -1.27% (YoY

NET SALES(Q)

Highest at JPY 40,454 MM

-14What is not working for the Company

INTEREST(Q)

At JPY 326 MM has Grown at 16.85%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,070.55

OPERATING PROFIT MARGIN(Q)

Lowest at 8.63 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,482 MM

NET PROFIT(Q)

Lowest at JPY 881.6 MM

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

Operating Cash Flow

Highest at JPY 12,699 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 40,454 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -1.27% (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.

Interest

At JPY 326 MM has Grown at 16.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,070.55

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 881.6 MM has Fallen at -43.86%

over average net sales of the previous four periods of JPY 1,570.41 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 326 MM

in the last five periods and Increased by 16.85% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 8.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 1,482 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 881.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)