Tokyo Soir Co., Ltd. (8040) 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

AZEARTH Corp.

Daidoh Ltd.

KURAUDIA HOLDINGS Co., Ltd.

Yamato International, Inc.

Tsukamoto Corp Co., Ltd.

Tokyo Soir Co., Ltd.

Tabio Corp.

Cross Plus Inc.

Charle Co., Ltd.

Atsugi Co., Ltd.

KIMURATAN Corp.

Why is Tokyo Soir Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.94%

The company has been able to generate a Return on Equity (avg) of 6.94% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 5.93

Poor long term growth as Net Sales has grown by an annual rate of 9.31% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 5.93
The company has been able to generate a Return on Equity (avg) of 6.94% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.31% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at 0.33%
NET SALES(Q) Lowest at JPY 3,235.6 MM
OPERATING PROFIT(Q) Lowest at JPY -136.84 MM

With ROE of 1.22%, it has a very attractive valuation with a 0.37 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 13.77%, its profits have fallen by -75.6%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokyo Soir Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Tokyo Soir Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokyo Soir Co., Ltd.

13.77%

1.00

19.09%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.31%

EBIT Growth (5y)

15.01%

EBIT to Interest (avg)

16.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.45

Tax Ratio

42.41%

Dividend Payout Ratio

65.69%

Pledged Shares

Institutional Holding

ROCE (avg)

3.53%

ROE (avg)

6.94%

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

0.37

EV to EBIT

84.82

EV to EBITDA

6.33

EV to Capital Employed

0.27

EV to Sales

0.16

PEG Ratio

Dividend Yield

0.10%

ROCE (Latest)

0.32%

ROE (Latest)

1.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

DEBTORS TURNOVER RATIO(HY)

Highest at 11.77 times

RAW MATERIAL COST(Y)

Fallen by -4.85% (YoY

-20What is not working for the Company

ROCE(HY)

Lowest at 0.33%

NET SALES(Q)

Lowest at JPY 3,235.6 MM

OPERATING PROFIT(Q)

Lowest at JPY -136.84 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.23 %

PRE-TAX PROFIT(Q)

Lowest at JPY -151.06 MM

NET PROFIT(Q)

Lowest at JPY -143.6 MM

EPS(Q)

Lowest at JPY -43.85

Here's what is working for Tokyo Soir Co., Ltd.

Debtors Turnover Ratio

Highest at 11.77 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.85% (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 Tokyo Soir Co., Ltd.

Pre-Tax Profit

At JPY -151.06 MM has Fallen at -79.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -143.6 MM has Fallen at -66.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 3,235.6 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -136.84 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -4.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -151.06 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 -143.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -43.85

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)