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

Seiren Co., Ltd.

Toray Industries, Inc.

Fujibo Holdings, Inc.

Nitto Boseki Co., Ltd.

KOMATSU MATERE Co., Ltd.

Sumitomo Seika Chemicals Co., Ltd.

Transaction Co., Ltd.

Sankyo Seiko Co., Ltd.

The Japan Wool Textile Co., Ltd.

KURABO INDUSTRIES LTD.

Teijin Ltd.

Why is Transaction Co., Ltd. ?

Flat results in May 26

INTEREST(HY) At JPY 1.99 MM has Grown at 77.68%
ROCE(HY) Lowest at 21.14%

With ROE of 20.73%, it has a attractive valuation with a 3.74 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 -53.89%, its profits have risen by 11%

Below par performance in long term as well as near term

Along with generating -53.89% 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.

-54.6%

-0.64

60.23%

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)

8.61%

EBIT Growth (5y)

13.40%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

1.34

Tax Ratio

33.41%

Dividend Payout Ratio

40.22%

Pledged Shares

Institutional Holding

ROCE (avg)

38.63%

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

3.74

EV to EBIT

11.50

EV to EBITDA

11.06

EV to Capital Employed

4.83

EV to Sales

2.46

PEG Ratio

Dividend Yield

ROCE (Latest)

42.00%

ROE (Latest)

20.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.26% (YoY

NET SALES(Q)

Highest at JPY 8,298.7 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,877.17 MM

NET PROFIT(Q)

Highest at JPY 1,238.4 MM

EPS(Q)

Highest at JPY 22.27

-10What is not working for the Company

INTEREST(HY)

At JPY 1.99 MM has Grown at 77.68%

ROCE(HY)

Lowest at 21.14%

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

Net Sales

Highest at JPY 8,298.7 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 8,298.7 MM has Grown at 15.3%

over average net sales of the previous four periods of JPY 7,197.54 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 1,877.17 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,238.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 22.27

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -0.26% (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 75.71 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 75.71 MM has Grown at 28.51%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Transaction Co., Ltd.

Interest

At JPY 1.99 MM has Grown at 77.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Non Operating Income

Highest at JPY 0.08 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income