Takano Co., Ltd. (7885) 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

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LIHIT LAB., INC.

King Jim Co., Ltd.

Takano Co., Ltd.

AuBEX Corp.

Pilot Corp.

Imura & Co. Ltd.

Why is Takano Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.04%

The company has been able to generate a Return on Equity (avg) of 2.04% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 2.04%

Poor long term growth as Net Sales has grown by an annual rate of 5.20% and Operating profit at 36.26% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 2.04% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.20% and Operating profit at 36.26% over the last 5 years

Positive results in Jun 26

PRE-TAX PROFIT(Q) At JPY 231.09 MM has Grown at 11,247.52%
NET PROFIT(Q) At JPY 127.55 MM has Grown at 1,316.36%
ROCE(HY) Highest at 2.35%

With ROE of 2.02%, it has a attractive valuation with a 0.51 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 46.38%, its profits have risen by 25% ; the PEG ratio of the company is 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Takano 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 Takano Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Takano Co., Ltd.

43.11%

0.38

47.59%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.20%

EBIT Growth (5y)

36.26%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.77

Tax Ratio

25.99%

Dividend Payout Ratio

49.40%

Pledged Shares

Institutional Holding

ROCE (avg)

3.78%

ROE (avg)

2.04%

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

0.51

EV to EBIT

8.51

EV to EBITDA

3.83

EV to Capital Employed

0.29

EV to Sales

0.27

PEG Ratio

1.01

Dividend Yield

ROCE (Latest)

3.46%

ROE (Latest)

2.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly 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

18What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 231.09 MM has Grown at 11,247.52%

NET PROFIT(Q)

At JPY 127.55 MM has Grown at 1,316.36%

ROCE(HY)

Highest at 2.35%

RAW MATERIAL COST(Y)

Fallen by -3.89% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.58 times

-8What is not working for the Company

INTEREST(HY)

At JPY 1.23 MM has Grown at 134.6%

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

Pre-Tax Profit

At JPY 231.09 MM has Grown at 11,247.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 127.55 MM has Grown at 1,316.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 3.58 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.89% (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 Takano Co., Ltd.

Interest

At JPY 1.23 MM has Grown at 134.6%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)