The Global Ltd. (3271) 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

Tokyu Construction Co., Ltd.

NISSHIN GROUP HOLDINGS Co., Ltd.

AVANTIA Co., Ltd.

Asanuma Corp.

Sankyo Frontier Co., Ltd.

The Global Ltd.

Japan Living Warranty, Inc.

Takamatsu Construction Group Co. Ltd.

Grandy House Corp.

NIHON HOUSE HOLDINGS Co., Ltd.

First Juken Co., Ltd.

Why is The Global Ltd. ?

Poor Management Efficiency with a low ROCE of 3.06%

The company has been able to generate a Return on Capital Employed (avg) of 3.06% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -2.26% and Operating profit at 38.90% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 3.06% signifying low profitability per unit of total capital (equity and debt)

The company declared very negative results in Mar'25 after flat results in Dec'24

INTEREST(9M) At JPY 515.46 MM has Grown at 7.04%
ROCE(HY) Lowest at 31.28%
NET SALES(Q) Lowest at JPY 4,230 MM

With ROCE of 3.22%, it has a very attractive valuation with a 1.38 Enterprise value to Capital Employed

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 -1.59%, its profits have fallen by -28.7%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Global Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is The Global Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

The Global Ltd.

-1.59%

1.03

40.78%

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)

-2.26%

EBIT Growth (5y)

38.90%

EBIT to Interest (avg)

0.84

Debt to EBITDA (avg)

25.51

Net Debt to Equity (avg)

5.66

Sales to Capital Employed (avg)

1.09

Tax Ratio

20.00%

Dividend Payout Ratio

30.74%

Pledged Shares

Institutional Holding

ROCE (avg)

3.06%

ROE (avg)

15.97%

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

3.23

EV to EBIT

42.82

EV to EBITDA

42.14

EV to Capital Employed

1.38

EV to Sales

2.02

PEG Ratio

Dividend Yield

ROCE (Latest)

3.22%

ROE (Latest)

28.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -152.08% (YoY

NET SALES(9M)

Higher at JPY 44,137.17 MM

NET PROFIT(9M)

Higher at JPY 3,282.13 MM

CASH AND EQV(HY)

Highest at JPY 19,421 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.89 %

-17What is not working for the Company

INTEREST(9M)

At JPY 515.46 MM has Grown at 7.04%

ROCE(HY)

Lowest at 31.28%

NET SALES(Q)

Lowest at JPY 4,230 MM

PRE-TAX PROFIT(Q)

At JPY 616 MM has Fallen at -36.4%

NET PROFIT(Q)

At JPY 502 MM has Fallen at -37.69%

Here's what is working for The Global Ltd.

Operating Profit Margin

Highest at 18.89 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 19,421 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -152.08% (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 21 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 The Global Ltd.

Net Sales

At JPY 4,230 MM has Fallen at -71.77%

over average net sales of the previous four periods of JPY 14,982.39 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 515.46 MM has Grown at 7.04%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 4,230 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 616 MM has Fallen at -36.4%

over average net sales of the previous four periods of JPY 968.59 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 502 MM has Fallen at -37.69%

over average net sales of the previous four periods of JPY 805.69 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)