Toyokumo, Inc. (4058) 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

Temairazu, Inc.

Japan Data Science Consortium Co., Ltd.

Toyokumo, Inc.

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Cybertrust Japan Co. Ltd.

Asia Air Survey Co., Ltd.

Geniee, Inc.

gumi, Inc.

AI inside, Inc.

Yuke's Co., Ltd.

T&S, Inc.

Why is Toyokumo, Inc. ?

High Management Efficiency with a high ROE of 26.34%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 28.05% and Operating profit at 36.84%

With a growth in Net Sales of 50.33%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 13 consecutive quarters
DIVIDEND PER SHARE(HY) Highest at JPY 33.97
NET SALES(Q) Highest at JPY 1,346 MM
CASH AND EQV(HY) Highest at JPY 8,458 MM

With ROE of 30.28%, it has a attractive valuation with a 11.65 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 -30.73%, its profits have risen by 41.4% ; the PEG ratio of the company is 0.9

Below par performance in long term as well as near term

Along with generating -30.73% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Toyokumo, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Toyokumo, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toyokumo, Inc.

-30.73%

0.46

50.80%

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)

28.05%

EBIT Growth (5y)

36.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.90

Sales to Capital Employed (avg)

1.10

Tax Ratio

28.37%

Dividend Payout Ratio

18.15%

Pledged Shares

Institutional Holding

ROCE (avg)

412.73%

ROE (avg)

26.34%

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

11.65

EV to EBIT

25.36

EV to EBITDA

23.95

EV to Capital Employed

104.66

EV to Sales

8.88

PEG Ratio

0.93

Dividend Yield

ROCE (Latest)

412.73%

ROE (Latest)

30.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

15What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 33.97

NET SALES(Q)

Highest at JPY 1,346 MM

CASH AND EQV(HY)

Highest at JPY 8,458 MM

-8What is not working for the Company

INTEREST(9M)

At JPY 1 MM has Grown at inf%

RAW MATERIAL COST(Y)

Grown by 7.47% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 0 %

OPERATING PROFIT MARGIN(Q)

Lowest at 28.01 %

PRE-TAX PROFIT(Q)

Lowest at JPY 304 MM

Here's what is working for Toyokumo, Inc.

Net Sales

Highest at JPY 1,346 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 1,346 MM has Grown at 50.33%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 33.97 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 8,458 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 71 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 Toyokumo, Inc.

Interest

At JPY 1 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 28.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 304 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Highest at 0 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 7.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales