ScoreWhy is Step Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Operating profit has grown by an annual rate 5.70% of over the last 5 years
3
With a growth in Net Profit of 66.93%, the company declared Very Positive results in Dec 25
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- RAW MATERIAL COST(Y) Fallen by 1.17% (YoY)
- DEBTORS TURNOVER RATIO(HY) Highest at 128.59 times
4
With ROE of 9.62%, it has a very attractive valuation with a 1.37 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 8.11%, its profits have risen by 9.7% ; the PEG ratio of the company is 1.5
5
Underperformed the market in the last 1 year
- The stock has generated a return of 8.11% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Step Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Step Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Step Co., Ltd.
8.11%
1.60
17.83%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.01%
EBIT Growth (5y)
5.70%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.36
Sales to Capital Employed (avg)
0.57
Tax Ratio
29.47%
Dividend Payout Ratio
49.90%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
20.36%
ROE (avg)
9.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.37
EV to EBIT
7.55
EV to EBITDA
6.60
EV to Capital Employed
1.59
EV to Sales
1.76
PEG Ratio
1.47
Dividend Yield
NA
ROCE (Latest)
21.04%
ROE (Latest)
9.62%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by 1.17% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 128.59 times
NET SALES(Q)
Highest at JPY 4,549.47 MM
PRE-TAX PROFIT(Q)
Highest at JPY 1,687.46 MM
NET PROFIT(Q)
Highest at JPY 1,168.21 MM
EPS(Q)
Highest at JPY 74.4
-5What is not working for the Company
INTEREST(9M)
At JPY 0.49 MM has Grown at 19.61%
CASH AND EQV(HY)
Lowest at JPY 16,016.33 MM
DEBT-EQUITY RATIO
(HY)
Highest at -29.17 %
Here's what is working for Step Co., Ltd.
Net Sales
Highest at JPY 4,549.47 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 4,549.47 MM has Grown at 14.84%
over average net sales of the previous four periods of JPY 3,961.72 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
Highest at JPY 1,687.46 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 1,687.46 MM has Grown at 74.6%
over average net sales of the previous four periods of JPY 966.47 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 1,168.21 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 1,168.21 MM has Grown at 73.73%
over average net sales of the previous four periods of JPY 672.42 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 74.4
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Highest at 128.59 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 1.17% (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 138.66 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Step Co., Ltd.
Interest
At JPY 0.49 MM has Grown at 19.61%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 16,016.33 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at -29.17 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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