TAKARA & COMPANY LTD. (7921) 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

F&M Co., Ltd.

Bewith, Inc.

Aidma Holdings, Inc.

Net Protections Holdings, Inc.

TAKARA & COMPANY LTD.

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Central Security Patrols Co., Ltd.

Chilled & Frozen Logistics Holdings Co., Ltd.

S-Pool, Inc.

Studio Alice Co., Ltd.

Speee, Inc.

Why is TAKARA & COMPANY LTD. ?

Company has very low debt and has enough cash to service the debt requirements

Negative results in Feb 26

INTEREST(HY) At JPY 1.38 MM has Grown at 139.03%
INTEREST COVERAGE RATIO(Q) Lowest at 92,280.12
DEBT-EQUITY RATIO (HY) Highest at -52.25 %

With ROE of 13.60%, it has a very attractive valuation with a 1.70 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 -6.61%, its profits have risen by 47.7% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -6.61% 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 TAKARA & COMPANY 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 TAKARA & COMPANY LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TAKARA & COMPANY LTD.

-8.51%

0.40

25.72%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.65%

EBIT Growth (5y)

12.15%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

1.03

Tax Ratio

31.69%

Dividend Payout Ratio

28.66%

Pledged Shares

Institutional Holding

ROCE (avg)

29.51%

ROE (avg)

10.77%

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

1.70

EV to EBIT

7.61

EV to EBITDA

5.74

EV to Capital Employed

2.97

EV to Sales

1.05

PEG Ratio

0.26

Dividend Yield

ROCE (Latest)

39.04%

ROE (Latest)

13.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 36,033.49 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 12.11 times

-17What is not working for the Company

INTEREST(HY)

At JPY 1.38 MM has Grown at 139.03%

INTEREST COVERAGE RATIO(Q)

Lowest at 92,280.12

DEBT-EQUITY RATIO (HY)

Highest at -52.25 %

OPERATING PROFIT(Q)

Lowest at JPY 598.9 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.57 %

PRE-TAX PROFIT(Q)

Lowest at JPY 292.71 MM

NET PROFIT(Q)

Lowest at JPY 148.23 MM

EPS(Q)

Lowest at JPY 11.48

Here's what is working for TAKARA & COMPANY LTD.

Cash and Eqv

Highest at JPY 36,033.49 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 12.11 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 368.46 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for TAKARA & COMPANY LTD.

Interest

At JPY 1.38 MM has Grown at 139.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 92,280.12

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 598.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 9.57 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 292.71 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 148.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -38.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 11.48

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -52.25 %

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