Toso Co. Ltd. (5956) 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

AGC, Inc. (Japan)

Nippon Sheet Glass Co., Ltd.

Cleanup Corp.

Tachikawa Corp.

Maruhachi Holdings Co., Ltd.

TOLI Corp.

BRUNO, Inc.

Toso Co. Ltd.

Paramount Bed Holdings Co., Ltd.

Janis Ltd.

Suminoe Textile Co. Ltd.

Why is Toso Co. Ltd. ?

Poor Management Efficiency with a low ROE of 3.65%

The company has been able to generate a Return on Equity (avg) of 3.65% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a -0.55% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 3.65% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.48% and Operating profit at -0.55% over the last 5 years

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at -10.22 %
INTEREST(Q) Highest at JPY 12.07 MM

With ROE of 4.67%, it has a fair 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 7.29%, its profits have risen by 78.5% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Toso Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toso Co. Ltd.

7.3%

0.23

29.03%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.48%

EBIT Growth (5y)

-0.55%

EBIT to Interest (avg)

30.39

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.36

Tax Ratio

21.65%

Dividend Payout Ratio

20.45%

Pledged Shares

Institutional Holding

ROCE (avg)

6.04%

ROE (avg)

3.65%

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

3.96

EV to EBITDA

2.40

EV to Capital Employed

0.30

EV to Sales

0.18

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

7.56%

ROE (Latest)

4.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

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

RAW MATERIAL COST(Y)

Fallen by -1.12% (YoY

CASH AND EQV(HY)

Highest at JPY 8,714.09 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.36 times

-15What is not working for the Company

INTEREST(HY)

At JPY 24.61 MM has Grown at 42.38%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,760.17

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.98 times

NET SALES(Q)

Lowest at JPY 5,293.51 MM

OPERATING PROFIT(Q)

Lowest at JPY 220.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.17 %

NET PROFIT(Q)

Lowest at JPY 41.94 MM

Here's what is working for Toso Co. Ltd.

Cash and Eqv

Highest at JPY 8,714.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.36 times

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 -1.12% (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 Toso Co. Ltd.

Interest

At JPY 24.61 MM has Grown at 42.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,760.17

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 5,293.51 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 220.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 41.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 2.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.28 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income