The Japan Wool Textile Co., Ltd. (3201) 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

Seiren Co., Ltd.

Toray Industries, Inc.

Fujibo Holdings, Inc.

Nitto Boseki Co., Ltd.

KOMATSU MATERE Co., Ltd.

Sumitomo Seika Chemicals Co., Ltd.

Transaction Co., Ltd.

Sankyo Seiko Co., Ltd.

The Japan Wool Textile Co., Ltd.

KURABO INDUSTRIES LTD.

Teijin Ltd.

Why is The Japan Wool Textile Co., Ltd. ?

Weak Long Term Fundamental Strength with a 3.05% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 3.05% over the last 5 years

Flat results in May 26

INTEREST COVERAGE RATIO(Q) Lowest at 8,356.6
DIVIDEND PAYOUT RATIO(Y) Lowest at 49.04%
CASH AND EQV(HY) Lowest at JPY 68,287 MM

With ROE of 7.35%, it has a very attractive valuation with a 0.92 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 36.00%, its profits have fallen by -0.9% ; the PEG ratio of the company is 7.3
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 36.00% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Japan Wool Textile Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is The Japan Wool Textile Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Japan Wool Textile Co., Ltd.

35.5%

1.76

26.92%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.05%

EBIT Growth (5y)

5.38%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.84

Tax Ratio

31.48%

Dividend Payout Ratio

35.54%

Pledged Shares

Institutional Holding

ROCE (avg)

11.51%

ROE (avg)

7.58%

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

0.92

EV to EBIT

9.18

EV to EBITDA

6.68

EV to Capital Employed

0.91

EV to Sales

0.93

PEG Ratio

7.25

Dividend Yield

ROCE (Latest)

9.96%

ROE (Latest)

7.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

No Trend

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

5What is working for the Company

ROCE(HY)

Highest at 7.72%

RAW MATERIAL COST(Y)

Fallen by -5.65% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.31 times

DIVIDEND PER SHARE(HY)

Highest at JPY 5.31

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 8,356.6

DIVIDEND PAYOUT RATIO(Y)

Lowest at 49.04%

CASH AND EQV(HY)

Lowest at JPY 68,287 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.64 times

INTEREST(Q)

Highest at JPY 53 MM

Here's what is working for The Japan Wool Textile Co., Ltd.

Debtors Turnover Ratio

Highest at 5.31 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 5.31

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -5.65% (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 The Japan Wool Textile Co., Ltd.

Interest

At JPY 53 MM has Grown at 39.47%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 8,356.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 53 MM

in the last five periods and Increased by 39.47% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 68,287 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 49.04%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)