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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

McDonald's Holdings Co. (Japan) Ltd.

Saizeriya Co., Ltd.

TORIDOLL Holdings Corp.

Skylark Holdings Co., Ltd.

Colowide Co., Ltd.

Zensho Holdings Co., Ltd.

create restaurants holdings, inc.

FOOD & LIFE COMPANIES LTD.

Yoshinoya Holdings Co., Ltd.

Ichibanya Co., Ltd.

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)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.53% and Operating profit at 5.75% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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 2.53% and Operating profit at 5.75% over the last 5 years

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 2,279.91
CASH AND EQV(HY) Lowest at JPY 32,574 MM
DEBT-EQUITY RATIO (HY) Highest at 120.78 %

With ROCE of 9.47%, it has a attractive valuation with a 2.99 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 36.04%, its profits have risen by 51.9% ; the PEG ratio of the company is 0.9

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, High Return

Absolute

Risk Adjusted

Volatility

Skylark Holdings Co., Ltd.

36.04%

1.82

25.85%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.53%

EBIT Growth (5y)

5.75%

EBIT to Interest (avg)

0.48

Debt to EBITDA (avg)

3.14

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

1.27

Tax Ratio

34.71%

Dividend Payout Ratio

30.14%

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

4.14

EV to EBIT

31.56

EV to EBITDA

11.08

EV to Capital Employed

2.99

EV to Sales

1.98

PEG Ratio

0.93

Dividend Yield

ROCE (Latest)

9.47%

ROE (Latest)

8.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

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

6What is working for the Company

NET PROFIT(9M)

At JPY 11,390 MM has Grown at 53.88%

ROCE(HY)

Highest at 8.99%

RAW MATERIAL COST(Y)

Fallen by 0.97% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 24.21

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,279.91

CASH AND EQV(HY)

Lowest at JPY 32,574 MM

DEBT-EQUITY RATIO (HY)

Highest at 120.78 %

INTEREST(Q)

Highest at JPY 866 MM

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

Net Profit

At JPY 11,390 MM has Grown at 53.88%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Dividend per share

Highest at JPY 24.21

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 0.97% (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

Depreciation

Highest at JPY 13,026 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Skylark Holdings Co., Ltd.

Interest

At JPY 866 MM has Grown at 11.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,279.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 866 MM

in the last five periods and Increased by 11.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 32,574 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 120.78 %

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