SRS HOLDINGS CO., LTD. (8163) 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

CHIKARANOMOTO HOLDINGS Co., Ltd.

Watami Co., Ltd.

Genki Sushi Co., Ltd.

SRS HOLDINGS CO., LTD.

Bronco Billy Co., Ltd.

SFP Holdings Co. Ltd.

Fujio Food Group, Inc.

Ringer Hut Co., Ltd.

HotLand Co., Ltd.

KISOJI CO., LTD.

KFC Holdings Japan Ltd.

Why is SRS HOLDINGS CO., LTD. ?

Poor Management Efficiency with a low ROE of 4.81%

The company has been able to generate a Return on Equity (avg) of 4.81% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -6.14

Poor long term growth as Operating profit has grown by an annual rate 23.67% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -6.14
The company has been able to generate a Return on Equity (avg) of 4.81% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 23.67% of over the last 5 years

With a growth in Operating Profit of 71.75%, the company declared Very Positive results in Mar 26

DIVIDEND PAYOUT RATIO(Y) Highest at 85.13%
RAW MATERIAL COST(Y) Fallen by 0.62% (YoY)
CASH AND EQV(HY) Highest at JPY 26,295.08 MM

With ROE of 10.41%, it has a expensive valuation with a 2.78 Price to Book Value

Over the past year, while the stock has generated a return of 17.72%, its profits have fallen by -15.3%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SRS 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 SRS HOLDINGS CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SRS HOLDINGS CO., LTD.

17.72%

1.24

17.65%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.15%

EBIT Growth (5y)

23.67%

EBIT to Interest (avg)

3.68

Debt to EBITDA (avg)

0.28

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

2.16

Tax Ratio

39.43%

Dividend Payout Ratio

24.40%

Pledged Shares

Institutional Holding

ROCE (avg)

8.90%

ROE (avg)

4.81%

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

2.78

EV to EBIT

19.21

EV to EBITDA

9.78

EV to Capital Employed

2.45

EV to Sales

0.71

PEG Ratio

Dividend Yield

ROCE (Latest)

12.77%

ROE (Latest)

10.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

13What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 85.13%

RAW MATERIAL COST(Y)

Fallen by 0.62% (YoY

CASH AND EQV(HY)

Highest at JPY 26,295.08 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 22.54

NET SALES(Q)

Highest at JPY 19,760.8 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,318.51 MM

NET PROFIT(Q)

Highest at JPY 909.31 MM

-6What is not working for the Company

INTEREST(Q)

Highest at JPY 42.62 MM

Here's what is working for SRS HOLDINGS CO., LTD.

Pre-Tax Profit

At JPY 1,318.51 MM has Grown at 172.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

Highest at JPY 19,760.8 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 1,318.51 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 909.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 909.31 MM has Grown at 67.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 26,295.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 22.54

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 85.13%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.62% (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 752.3 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 SRS HOLDINGS CO., LTD.

Interest

Highest at JPY 42.62 MM

in the last five periods and Increased by 8.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)