Step Co., Ltd. (9795) 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

JP Holdings, Inc.

Curves Holdings Co., Ltd.

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Step Co., Ltd.

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Kanagawa Chuo Kotsu Co., Ltd.

Tosho Co., Ltd.

Adventure, Inc.

Why is Step Co., Ltd. ?

Weak Long Term Fundamental Strength with a 9.87% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 9.87% of over the last 5 years

Flat results in Jun 26

CASH AND EQV(HY) Lowest at JPY 13,998.44 MM
DEBT-EQUITY RATIO (HY) Highest at -22.95 %
INVENTORY TURNOVER RATIO(HY) Lowest at 179.02 times

With ROE of 9.86%, it has a very attractive valuation with a 1.34 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 -4.46%, its profits have risen by 4.8% ; the PEG ratio of the company is 2.8

Below par performance in long term as well as near term

Along with generating -4.46% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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.

-4.46%

1.03

16.13%

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)

6.86%

EBIT Growth (5y)

9.87%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

0.57

Tax Ratio

30.31%

Dividend Payout Ratio

49.90%

Pledged Shares

Institutional Holding

ROCE (avg)

21.18%

ROE (avg)

9.59%

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

1.34

EV to EBIT

7.80

EV to EBITDA

6.85

EV to Capital Employed

1.47

EV to Sales

1.85

PEG Ratio

2.84

Dividend Yield

ROCE (Latest)

18.81%

ROE (Latest)

9.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

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

3What is working for the Company

ROCE(HY)

Highest at 10.54%

RAW MATERIAL COST(Y)

Fallen by -13.6% (YoY

-6What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 13,998.44 MM

DEBT-EQUITY RATIO (HY)

Highest at -22.95 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 179.02 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 75.05 times

PRE-TAX PROFIT(Q)

At JPY 663.12 MM has Fallen at -32.4%

NET PROFIT(Q)

At JPY 455.39 MM has Fallen at -33.39%

Here's what is working for Step Co., Ltd.

Raw Material Cost

Fallen by -13.6% (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 Step Co., Ltd.

Pre-Tax Profit

At JPY 663.12 MM has Fallen at -32.4%

over average net sales of the previous four periods of JPY 980.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 455.39 MM has Fallen at -33.39%

over average net sales of the previous four periods of JPY 683.65 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 13,998.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -22.95 %

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

Inventory Turnover Ratio

Lowest at 179.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 75.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio