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)

Cleanup Corp.

BRUNO, Inc.

TOLI Corp.

Suminoe Textile Co. Ltd.

Tachikawa Corp.

Toso Co. Ltd.

Maruhachi Holdings Co., Ltd.

Paramount Bed Holdings Co., Ltd.

Nippon Sheet Glass Co., Ltd.

Janis 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

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 32.85

Poor long term growth as Net Sales has grown by an annual rate of 0.09% and Operating profit at -3.68% over the last 5 years

Positive results in Dec 25

NET PROFIT(9M) At JPY 436.59 MM has Grown at 84.71%
ROCE(HY) Highest at 4.76%
INTEREST COVERAGE RATIO(Q) Highest at 7,623.24

With ROE of 3.45%, it has a very attractive valuation with a 0.35 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 17.05%, its profits have risen by 66.3% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 17.05% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Toso Co. Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Toso Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toso Co. Ltd.

17.05%

0.47

25.26%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.09%

EBIT Growth (5y)

-3.68%

EBIT to Interest (avg)

32.85

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.38

Tax Ratio

34.72%

Dividend Payout Ratio

20.52%

Pledged Shares

Institutional Holding

ROCE (avg)

6.66%

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

0.35

EV to EBIT

4.17

EV to EBITDA

2.27

EV to Capital Employed

0.25

EV to Sales

0.14

PEG Ratio

0.15

Dividend Yield

ROCE (Latest)

5.91%

ROE (Latest)

3.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

10What is working for the Company

NET PROFIT(9M)

At JPY 436.59 MM has Grown at 84.71%

ROCE(HY)

Highest at 4.76%

INTEREST COVERAGE RATIO(Q)

Highest at 7,623.24

RAW MATERIAL COST(Y)

Fallen by -2.5% (YoY

CASH AND EQV(HY)

Highest at JPY 8,683.37 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.2 %

PRE-TAX PROFIT(Q)

Highest at JPY 397.26 MM

-5What is not working for the Company

INTEREST(HY)

At JPY 15.41 MM has Grown at 9.38%

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

Interest Coverage Ratio

Highest at 7,623.24

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At JPY 436.59 MM has Grown at 84.71%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Operating Profit Margin

Highest at 9.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 397.26 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 8,683.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.5% (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 15.41 MM has Grown at 9.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)