Transaction Co., Ltd. (7818) 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

Sumitomo Seika Chemicals Co., Ltd.

Nitto Boseki Co., Ltd.

Toray Industries, Inc.

Seiren Co., Ltd.

KOMATSU MATERE Co., Ltd.

Transaction Co., Ltd.

KURABO INDUSTRIES LTD.

Fujibo Holdings, Inc.

Sankyo Seiko Co., Ltd.

The Japan Wool Textile Co., Ltd.

Teijin Ltd.

Why is Transaction Co., Ltd. ?

High Management Efficiency with a high ROE of 18.97%

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

The company has declared negative results in Feb'2026 after 3 consecutive positive quarters

INTEREST(HY) At JPY 1.54 MM has Grown at 21.98%
INTEREST COVERAGE RATIO(Q) Lowest at 142,183.23
PRE-TAX PROFIT(Q) Lowest at JPY 1,389.22 MM

With ROE of 21.76%, it has a attractive valuation with a 3.73 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 -41.44%, its profits have risen by 12.1%

Below par performance in long term as well as near term

Along with generating -41.44% 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 Transaction Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Transaction Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Transaction Co., Ltd.

-100.0%

-0.46

59.87%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.51%

EBIT Growth (5y)

14.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

1.35

Tax Ratio

33.26%

Dividend Payout Ratio

40.22%

Pledged Shares

Institutional Holding

ROCE (avg)

39.29%

ROE (avg)

18.97%

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

3.73

EV to EBIT

11.48

EV to EBITDA

11.04

EV to Capital Employed

4.47

EV to Sales

2.43

PEG Ratio

Dividend Yield

ROCE (Latest)

38.88%

ROE (Latest)

21.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.23% (YoY

CASH AND EQV(HY)

Highest at JPY 11,029.86 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.32 times

DEBTORS TURNOVER RATIO(HY)

Highest at 9.26 times

-9What is not working for the Company

INTEREST(HY)

At JPY 1.54 MM has Grown at 21.98%

INTEREST COVERAGE RATIO(Q)

Lowest at 142,183.23

PRE-TAX PROFIT(Q)

Lowest at JPY 1,389.22 MM

NET PROFIT(Q)

Lowest at JPY 914.3 MM

EPS(Q)

Lowest at JPY 15.82

Here's what is working for Transaction Co., Ltd.

Cash and Eqv

Highest at JPY 11,029.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 9.26 times

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 -4.23% (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 Transaction Co., Ltd.

Interest

At JPY 1.54 MM has Grown at 21.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 142,183.23

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at JPY 1,389.22 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 914.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 15.82

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)