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.

Choushimaru Co., Ltd.

UKAI Co., Ltd.

Towa Food Service Co., Ltd.

Kourakuen Holdings Corp.

EAT&HOLDINGS Co., Ltd.

WDI Corp.

Daisyo Corp.

Yakiniku Sakai Holdings, Inc.

Hiramatsu, Inc.

Why is Towa Food Service Co., Ltd. ?

Poor Management Efficiency with a low ROE of 8.96%

The company has been able to generate a Return on Equity (avg) of 8.96% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 100.00

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 100.00
The company has been able to generate a Return on Equity (avg) of 8.96% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.19% over the last 5 years

Positive results in Apr 26

DIVIDEND PAYOUT RATIO(Y) Highest at 38.18%
RAW MATERIAL COST(Y) Fallen by 0.95% (YoY)
CASH AND EQV(HY) Highest at JPY 9,159.12 MM

With ROE of 10.00%, it has a fair valuation with a 2.25 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 0.66%, its profits have risen by 0.2% ; the PEG ratio of the company is 22.6

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.

0.57%

0.34

8.38%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.19%

EBIT Growth (5y)

22.18%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

1.80

Tax Ratio

32.44%

Dividend Payout Ratio

22.39%

Pledged Shares

Institutional Holding

ROCE (avg)

20.44%

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

2.25

EV to EBIT

12.47

EV to EBITDA

9.42

EV to Capital Employed

4.01

EV to Sales

0.95

PEG Ratio

22.55

Dividend Yield

ROCE (Latest)

32.12%

ROE (Latest)

10.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

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

8What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 38.18%

RAW MATERIAL COST(Y)

Fallen by 0.95% (YoY

CASH AND EQV(HY)

Highest at JPY 9,159.12 MM

DEBT-EQUITY RATIO (HY)

Lowest at -61.25 %

DIVIDEND PER SHARE(HY)

Highest at JPY 56.15

NET PROFIT(Q)

Highest at JPY 254.58 MM

EPS(Q)

Highest at JPY 31.43

-4What is not working for the Company

ROCE(HY)

Lowest at 10.05%

INVENTORY TURNOVER RATIO(HY)

Lowest at 16.83 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 56.15 times

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

Dividend Payout Ratio

Highest at 38.18% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Profit

Highest at JPY 254.58 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 31.43

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 9,159.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -61.25 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at JPY 56.15

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 0.95% (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

Depreciation

Highest at JPY 94.27 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Towa Food Service Co., Ltd.

Inventory Turnover Ratio

Lowest at 16.83 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 56.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio