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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

AGC, Inc. (Japan)

Cleanup Corp.

Toso Co. Ltd.

TOLI Corp.

Tachikawa Corp.

Suminoe Textile Co. Ltd.

BRUNO, Inc.

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

Flat results in Jun 25

INTEREST(HY) At JPY 17.29 MM has Grown at 44.5%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.18%

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 10.44%, 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 10.44% 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 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.

10.44%

0.24

14.12%

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)

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)

1.39

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

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

17What is working for the Company

ROCE(HY)

Highest at 4.53%

PRE-TAX PROFIT(Q)

At JPY 93.37 MM has Grown at 186.13%

NET PROFIT(Q)

At JPY 45.53 MM has Grown at 143.15%

RAW MATERIAL COST(Y)

Fallen by -4.98% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.14%

-9What is not working for the Company

INTEREST(HY)

At JPY 17.29 MM has Grown at 44.5%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.18%

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

Pre-Tax Profit

At JPY 93.37 MM has Grown at 186.13%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 45.53 MM has Grown at 143.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 3.14%

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 -4.98% (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 17.29 MM has Grown at 44.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.18%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio