Tea Life Co., Ltd. (3172) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Felissimo Corp.

Scroll Corp.

Aseed Holdings Co., Ltd.

Tea Life Co., Ltd.

Why is Tea Life Co., Ltd. ?

Negative results in Apr 25

INTEREST(HY) At JPY 2 MM has Grown at 100%
ROCE(HY) Lowest at 5.14%
INVENTORY TURNOVER RATIO(HY) Lowest at 8.16%

With ROE of 5.07%, it has a very attractive valuation with a 0.78 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 -0.26%, its profits have fallen by -20.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.26% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Tea Life Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tea Life Co., Ltd.

-0.26%

-1.22

14.74%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.68%

EBIT Growth (5y)

0.70%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.82

Tax Ratio

41.39%

Dividend Payout Ratio

61.43%

Pledged Shares

Institutional Holding

ROCE (avg)

16.79%

ROE (avg)

8.26%

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

0.78

EV to EBIT

5.67

EV to EBITDA

4.25

EV to Capital Employed

0.67

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

11.82%

ROE (Latest)

5.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly 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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.36% (YoY

CASH AND EQV(HY)

Highest at JPY 6,065 MM

DEBT-EQUITY RATIO (HY)

Lowest at -32.59 %

-24What is not working for the Company

INTEREST(HY)

At JPY 2 MM has Grown at 100%

ROCE(HY)

Lowest at 5.14%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.16%

NET SALES(Q)

Lowest at JPY 2,642 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 56 MM

NET PROFIT(Q)

Lowest at JPY 27.53 MM

EPS(Q)

Lowest at JPY 6.8

Here's what is working for Tea Life Co., Ltd.

Cash and Eqv

Highest at JPY 6,065 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -32.59 %

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 -2.36% (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 Tea Life Co., Ltd.

Interest

At JPY 2 MM has Grown at 100%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 27.53 MM has Fallen at -54.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 8.16% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at JPY 2,642 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

Fallen at -12.69%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY 56 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Fallen at -44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 27.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 6.8

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)