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
Flat results in Jun 25
- INTEREST(9M) At JPY 0.65 MM has Grown at 115.33%
- INTEREST COVERAGE RATIO(Q) Lowest at 332,214.29
- DEBT-EQUITY RATIO (HY) Highest at -31.98 %
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 12.78%, 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 12.78% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
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.
12.78%
1.21
19.28%
Japan Nikkei 225
28.54%
1.11
25.75%
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)
0.56
Tax Ratio
29.47%
Dividend Payout Ratio
49.49%
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
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.86% (YoY
-21What is not working for the Company
INTEREST(9M)
At JPY 0.65 MM has Grown at 115.33%
INTEREST COVERAGE RATIO(Q)
Lowest at 332,214.29
DEBT-EQUITY RATIO
(HY)
Highest at -31.98 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 80.54%
NET SALES(Q)
At JPY 3,639.41 MM has Fallen at -6.43%
OPERATING PROFIT(Q)
Lowest at JPY 627.88 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 17.25 %
PRE-TAX PROFIT(Q)
Lowest at JPY 496.24 MM
NET PROFIT(Q)
Lowest at JPY 337.56 MM
Here's what is working for Step Co., Ltd.
Raw Material Cost
Fallen by 0.86% (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.
Interest
At JPY 0.4 MM has Grown at 113.23%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 332,214.29
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At JPY 496.24 MM has Fallen at -46.32%
over average net sales of the previous four periods of JPY 924.43 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 337.56 MM has Fallen at -48.25%
over average net sales of the previous four periods of JPY 652.34 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Net Sales
At JPY 3,639.41 MM has Fallen at -6.43%
over average net sales of the previous four periods of JPY 3,889.51 MMMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Operating Profit
Lowest at JPY 627.88 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 17.25 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 496.24 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 337.56 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Debt-Equity Ratio
Highest at -31.98 %
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
Debtors Turnover Ratio
Lowest at 80.54%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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