Ryohin Keikaku Co., Ltd. (7453) 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

ASICS Corp.

Ryohin Keikaku Co., Ltd.

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Gunze Ltd.

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Onward Holdings Co., Ltd.

ABC-MART, INC.

Descente Ltd.

Why is Ryohin Keikaku Co., Ltd. ?

Strong Long Term Fundamental Strength with a 10.94% CAGR growth in Net Sales

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.35
The company has been able to generate a Return on Capital Employed (avg) of 16.60% signifying high profitability per unit of total capital (equity and debt)

Positive results in Nov 25

ROCE(HY) Highest at 17.06%
INTEREST COVERAGE RATIO(Q) Highest at 4,941.58
RAW MATERIAL COST(Y) Fallen by -2.08% (YoY)

With ROE of 17.19%, it has a attractive valuation with a 5.30 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 63.55%, its profits have risen by 64.9% ; the PEG ratio of the company is 0.5

Consistent Returns over the last 3 years

Along with generating 63.55% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Ryohin Keikaku Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Ryohin Keikaku Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ryohin Keikaku Co., Ltd.

63.55%

0.43

67.82%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.94%

EBIT Growth (5y)

12.99%

EBIT to Interest (avg)

22.22

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.85

Tax Ratio

21.03%

Dividend Payout Ratio

26.06%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

18.98%

ROE (avg)

10.45%

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

5.30

EV to EBIT

24.25

EV to EBITDA

16.77

EV to Capital Employed

5.95

EV to Sales

2.28

PEG Ratio

0.48

Dividend Yield

ROCE (Latest)

24.55%

ROE (Latest)

17.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Mildly 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

13What is working for the Company

ROCE(HY)

Highest at 17.06%

INTEREST COVERAGE RATIO(Q)

Highest at 4,941.58

RAW MATERIAL COST(Y)

Fallen by -2.08% (YoY

CASH AND EQV(HY)

Highest at JPY 284,677 MM

DEBT-EQUITY RATIO (HY)

Lowest at -13.3 %

NET SALES(Q)

Highest at JPY 228,227 MM

OPERATING PROFIT(Q)

Highest at JPY 36,963 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.2 %

PRE-TAX PROFIT(Q)

Highest at JPY 31,471 MM

NET PROFIT(Q)

Highest at JPY 22,045.59 MM

EPS(Q)

Highest at JPY 41.52

-8What is not working for the Company

INTEREST(HY)

At JPY 1,493 MM has Grown at 22.78%

Here's what is working for Ryohin Keikaku Co., Ltd.

Interest Coverage Ratio

Highest at 4,941.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 228,227 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 36,963 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 16.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 31,471 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 22,045.59 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 41.52

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 284,677 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -13.3 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.08% (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 Ryohin Keikaku Co., Ltd.

Interest

At JPY 1,493 MM has Grown at 22.78%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)