Studio Atao Co., Ltd. (3550) 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

Studio Atao Co., Ltd.

Artnature, Inc.

Samantha Thavasa Japan Ltd.

Why is Studio Atao Co., Ltd. ?

With a growth in Net Profit of 201.93%, the company declared Outstanding results in Feb 26

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 5.96%
INVENTORY TURNOVER RATIO(HY) Highest at 2.95 times
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 4.71%, it has a attractive valuation with a 1.26 Price to Book Value

Over the past year, while the stock has generated a return of 3.81%, its profits have risen by 81.1% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Studio Atao Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Studio Atao Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Studio Atao Co., Ltd.

3.81%

0.13

24.78%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.68%

EBIT Growth (5y)

-8.70%

EBIT to Interest (avg)

15.85

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

1.32

Tax Ratio

55.28%

Dividend Payout Ratio

45.69%

Pledged Shares

Institutional Holding

ROCE (avg)

8.90%

ROE (avg)

1.38%

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

1.26

EV to EBIT

7.20

EV to EBITDA

5.86

EV to Capital Employed

1.71

EV to Sales

0.40

PEG Ratio

0.33

Dividend Yield

ROCE (Latest)

23.73%

ROE (Latest)

4.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

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

25What is working for the Company

ROCE(HY)

Highest at 5.96%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.95 times

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -2.64% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -70.42 %

NET SALES(Q)

Highest at JPY 1,307.42 MM

OPERATING PROFIT(Q)

Highest at JPY 106.09 MM

PRE-TAX PROFIT(Q)

Highest at JPY 94.86 MM

NET PROFIT(Q)

Highest at JPY 62.93 MM

EPS(Q)

Highest at JPY 4.54

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Studio Atao Co., Ltd.

Net Sales

At JPY 1,307.42 MM has Grown at 30.14%

over average net sales of the previous four periods of JPY 1,004.61 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 2.95 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 1,307.42 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 106.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 94.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 94.86 MM has Grown at 69.19%

over average net sales of the previous four periods of JPY 56.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 62.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 62.93 MM has Grown at 111.89%

over average net sales of the previous four periods of JPY 29.7 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 4.54

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at -70.42 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.64% (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 12.94 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)