Stream Co., Ltd. (3071) 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

Ascentech KK

YKT Corp.

Naigai Tec Corp.

Stream Co., Ltd.

Takamisawa Co., Ltd.

No.1 Co., Ltd.

Toshin Holdings Co., Ltd.

Rikei Corp.

HYPER, Inc.

Recomm Co., Ltd.

Kyoei Sangyo Co., Ltd.

Why is Stream Co., Ltd. ?

High Management Efficiency with a high ROE of 11.84%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 25.61

Healthy long term growth as Operating profit has grown by an annual rate 9.96%

Positive results in Oct 25

OPERATING CASH FLOW(Y) Highest at JPY 1,333.33 MM
DEBT-EQUITY RATIO (HY) Lowest at -35.58 %
INVENTORY TURNOVER RATIO(HY) Highest at 9.61 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 4.95%, its profits have risen by 277.7% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 4.95% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Stream Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Stream Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Stream Co., Ltd.

4.95%

-0.27

23.18%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.29%

EBIT Growth (5y)

9.96%

EBIT to Interest (avg)

27.02

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

8.40

Tax Ratio

83.90%

Dividend Payout Ratio

1,990.71%

Pledged Shares

Institutional Holding

ROCE (avg)

22.60%

ROE (avg)

11.84%

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

1.10

EV to EBIT

12.07

EV to EBITDA

7.07

EV to Capital Employed

1.11

EV to Sales

0.10

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

9.17%

ROE (Latest)

6.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 1,333.33 MM

DEBT-EQUITY RATIO (HY)

Lowest at -35.58 %

INVENTORY TURNOVER RATIO(HY)

Highest at 9.61 times

DEBTORS TURNOVER RATIO(HY)

Highest at 21.13 times

NET PROFIT(Q)

At JPY 14.1 MM has Grown at 100.04%

-8What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 25.26 MM has Fallen at -60.34%

ROCE(HY)

Lowest at -0.93%

RAW MATERIAL COST(Y)

Grown by 7.7% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 65.06 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.84 %

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

Operating Cash Flow

Highest at JPY 1,333.33 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Profit

At JPY 14.1 MM has Grown at 100.04%

over average net sales of the previous four periods of JPY -34,304.03 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -35.58 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 9.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 21.13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Pre-Tax Profit

At JPY 25.26 MM has Fallen at -60.34%

over average net sales of the previous four periods of JPY 63.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Profit

Lowest at JPY 65.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 0.84 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 7.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales