Tose Co., Ltd. (4728) 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

BroadBand Security, Inc.

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Keyware Solutions, Inc.

CNS Co., Ltd.

Quest Co., Ltd.

Tose Co., Ltd.

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SystemSoft Corp. (Japan)

CAICA DIGITAL, Inc.

Morpho, Inc.

Why is Tose Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.61%

The company has been able to generate a Return on Equity (avg) of 5.61% signifying low profitability per unit of shareholders funds

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

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.61%

Flat results in Feb 26

PRE-TAX PROFIT(Q) At JPY 99.58 MM has Fallen at -40.51%
NET PROFIT(Q) Lowest at JPY 56.47 MM

With ROE of 8.14%, it has a very attractive valuation with a 0.80 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 -2.72%, its profits have risen by 102.4% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.72% 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 hold?

Overall Portfolio exposure to Tose Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Tose Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tose Co., Ltd.

-2.72%

-0.53

12.76%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.46%

EBIT Growth (5y)

24.13%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.93

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

75.72%

Pledged Shares

Institutional Holding

ROCE (avg)

10.08%

ROE (avg)

5.61%

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

0.80

EV to EBIT

4.72

EV to EBITDA

4.03

EV to Capital Employed

0.70

EV to Sales

0.44

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

14.78%

ROE (Latest)

8.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

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

7What is working for the Company

ROCE(HY)

Highest at 6.43%

DIVIDEND PAYOUT RATIO(Y)

Highest at 169.13%

RAW MATERIAL COST(Y)

Fallen by -14.11% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -29.07 %

INVENTORY TURNOVER RATIO(HY)

Highest at 199.1 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.32 times

-7What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 99.58 MM has Fallen at -40.51%

NET PROFIT(Q)

Lowest at JPY 56.47 MM

Here's what is working for Tose Co., Ltd.

Debt-Equity Ratio

Lowest at -29.07 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 199.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 169.13%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -14.11% (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 Tose Co., Ltd.

Pre-Tax Profit

At JPY 99.58 MM has Fallen at -40.51%

over average net sales of the previous four periods of JPY 167.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 56.47 MM has Fallen at -55.12%

over average net sales of the previous four periods of JPY 125.82 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Profit

Lowest at JPY 56.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)