Skylark Holdings Co., Ltd. (3197) 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

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Skylark Holdings Co., Ltd.

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create restaurants holdings, inc.

ATOM Corp.

Why is Skylark Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.48%

The company has been able to generate a Return on Capital Employed (avg) of 3.48% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 9.68% and Operating profit at 32.79% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.91% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.68% and Operating profit at 32.79% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 1,990 MM has Grown at 35.47%
INTEREST COVERAGE RATIO(Q) Lowest at 2,189.54
INVENTORY TURNOVER RATIO(HY) Lowest at 22.81 times

With ROCE of 11.91%, it has a very expensive valuation with a 3.12 Enterprise value to Capital Employed

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 -12.10%, its profits have risen by 18.3% ; the PEG ratio of the company is 2.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Skylark 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

Is Skylark Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Skylark Holdings Co., Ltd.

-100.0%

0.79

25.97%

Japan Nikkei 225

78.33%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.68%

EBIT Growth (5y)

32.79%

EBIT to Interest (avg)

0.48

Debt to EBITDA (avg)

3.14

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

1.36

Tax Ratio

34.71%

Dividend Payout Ratio

29.88%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

3.48%

ROE (avg)

2.91%

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

4.13

EV to EBIT

26.20

EV to EBITDA

10.15

EV to Capital Employed

3.12

EV to Sales

1.89

PEG Ratio

2.53

Dividend Yield

ROCE (Latest)

11.91%

ROE (Latest)

8.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 77,234 MM

ROCE(HY)

Highest at 9.81%

RAW MATERIAL COST(Y)

Fallen by 0.41% (YoY

CASH AND EQV(HY)

Highest at JPY 70,102 MM

NET SALES(Q)

Highest at JPY 121,263 MM

-11What is not working for the Company

INTEREST(HY)

At JPY 1,990 MM has Grown at 35.47%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,189.54

INVENTORY TURNOVER RATIO(HY)

Lowest at 22.81 times

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

Operating Cash Flow

Highest at JPY 77,234 MM

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 121,263 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 70,102 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.41% (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 Skylark Holdings Co., Ltd.

Interest

At JPY 1,990 MM has Grown at 35.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,189.54

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 22.81 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio