Towa Food Service Co., Ltd. (3329) 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

Maruchiyo Yamaokaya Corp.

Hurxley Corp.

UKAI Co., Ltd.

Towa Food Service Co., Ltd.

Choushimaru Co., Ltd.

Kourakuen Holdings Corp.

EAT&HOLDINGS Co., Ltd.

WDI Corp.

Hiramatsu, Inc.

Daisyo Corp.

Yakiniku Sakai Holdings, Inc.

Why is Towa Food Service Co., Ltd. ?

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

INVENTORY TURNOVER RATIO(HY) Lowest at 17.74 times
DEBTORS TURNOVER RATIO(HY) Lowest at 58.68 times
OPERATING PROFIT(Q) Lowest at JPY 229.51 MM

With ROE of 10.33%, it has a attractive valuation with a 2.38 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 1.67%, its profits have risen by 4.2% ; the PEG ratio of the company is 5.5

Underperformed the market in the last 1 year

The stock has generated a return of 1.67% 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 Towa Food Service Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is Towa Food Service Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Towa Food Service Co., Ltd.

0.81%

0.41

7.50%

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)

4.61%

EBIT Growth (5y)

56.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

1.79

Tax Ratio

31.90%

Dividend Payout Ratio

22.39%

Pledged Shares

Institutional Holding

ROCE (avg)

19.60%

ROE (avg)

8.96%

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

2.38

EV to EBIT

11.98

EV to EBITDA

9.13

EV to Capital Employed

4.52

EV to Sales

0.99

PEG Ratio

5.54

Dividend Yield

ROCE (Latest)

37.72%

ROE (Latest)

10.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.92% (YoY

CASH AND EQV(HY)

Highest at JPY 8,732.03 MM

-8What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.74 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 58.68 times

OPERATING PROFIT(Q)

Lowest at JPY 229.51 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.07 %

PRE-TAX PROFIT(Q)

Lowest at JPY 207.92 MM

NET PROFIT(Q)

Lowest at JPY 126.9 MM

EPS(Q)

Lowest at JPY 15.69

Here's what is working for Towa Food Service Co., Ltd.

Cash and Eqv

Highest at JPY 8,732.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.92% (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 Towa Food Service Co., Ltd.

Operating Profit

Lowest at JPY 229.51 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 207.92 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 126.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 126.9 MM has Fallen at -32.41%

over average net sales of the previous four periods of JPY 187.75 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 15.69

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 17.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 58.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.27 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income