The Pack Corp. (3950) 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

Toyo Seikan Group Holdings Ltd.

Kohsoku Corp.

SHIMOJIMA Co., Ltd.

Keiwa, Inc.

Tomoku Co., Ltd.

Hokkan Holdings Ltd.

The Pack Corp.

Okamoto Industries, Inc.

Asahi Printing Co., Ltd.

Oji Holdings Corp.

W-SCOPE Corp.

Why is The Pack Corp. ?

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

Poor long term growth as Net Sales has grown by an annual rate of 1.59% and Operating profit at 2.74% over the last 5 years

Negative results in Jun 25

INTEREST(9M) At JPY 1 MM has Grown at inf%
RAW MATERIAL COST(Y) Grown by 5.89% (YoY)
CASH AND EQV(HY) Lowest at JPY 49,629 MM

With ROE of 7.91%, it has a very attractive valuation with a 0.90 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 5.47%, its profits have fallen by -5.6%
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 5.47% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Pack Corp. should be less than 10%
Overall Portfolio exposure to Packaging should be less than 30%

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

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

Is The Pack Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Pack Corp.

5.47%

-0.93

71.17%

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)

1.59%

EBIT Growth (5y)

2.74%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

1.38

Tax Ratio

30.59%

Dividend Payout Ratio

35.38%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

14.34%

ROE (avg)

6.45%

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

0.90

EV to EBIT

5.66

EV to EBITDA

4.23

EV to Capital Employed

0.85

EV to Sales

0.43

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

14.99%

ROE (Latest)

7.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

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

DIVIDEND PER SHARE(HY)

Highest at JPY 5.58

DEBTORS TURNOVER RATIO(HY)

Highest at 5.58%

-7What is not working for the Company

INTEREST(9M)

At JPY 1 MM has Grown at inf%

RAW MATERIAL COST(Y)

Grown by 5.89% (YoY

CASH AND EQV(HY)

Lowest at JPY 49,629 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.01%

Here's what is working for The Pack Corp.

Dividend per share

Highest at JPY 5.58 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Debtors Turnover Ratio

Highest at 5.58%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for The Pack Corp.

Interest

At JPY 1 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 49,629 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 8.01%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.89% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at JPY 0.25 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income