TRE Holdings Corp. () 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

Systena Corp.

Future Corp.

I'LL Inc.

Simplex Holdings, Inc.

DTS Corp.

Zuken, Inc.

Comture Corp.

Daikoku Denki Co., Ltd.

TechMatrix Corp.

TRE Holdings Corp.

Infocom Corp.

Why is TRE Holdings Corp. ?

The company is Net-Debt Free

The company is Net-Debt Free

Healthy long term growth as Net Sales has grown by an annual rate of 24.82% and Operating profit at 45.78%

Negative results in Mar 26

INTEREST(HY) At JPY 394 MM has Grown at 115.3%
INTEREST COVERAGE RATIO(Q) Lowest at 3,063.39
DIVIDEND PAYOUT RATIO(Y) Lowest at 54.55%

With ROCE of 21.86%, it has a very attractive valuation with a 1.03 Enterprise value to Capital Employed

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 56.43%, its profits have risen by 34.5% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 56.43% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TRE Holdings Corp. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

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

Is TRE Holdings Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TRE Holdings Corp.

50.25%

2.35

34.08%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.82%

EBIT Growth (5y)

45.78%

EBIT to Interest (avg)

28.47

Debt to EBITDA (avg)

2.12

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

0.82

Tax Ratio

35.01%

Dividend Payout Ratio

18.61%

Pledged Shares

Institutional Holding

ROCE (avg)

10.60%

ROE (avg)

9.86%

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

1.05

EV to EBIT

4.72

EV to EBITDA

3.46

EV to Capital Employed

1.03

EV to Sales

1.00

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

21.86%

ROE (Latest)

19.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

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

3What is working for the Company

CASH AND EQV(HY)

Highest at JPY 60,270 MM

DEBT-EQUITY RATIO (HY)

Lowest at 33.71 %

DIVIDEND PER SHARE(HY)

Highest at JPY 7.17

-29What is not working for the Company

INTEREST(HY)

At JPY 394 MM has Grown at 115.3%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,063.39

DIVIDEND PAYOUT RATIO(Y)

Lowest at 54.55%

RAW MATERIAL COST(Y)

Grown by 26.93% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 23.97 times

NET SALES(Q)

Lowest at JPY 27,605 MM

OPERATING PROFIT(Q)

Lowest at JPY 5,606 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.31 %

PRE-TAX PROFIT(Q)

Lowest at JPY 3,085 MM

NET PROFIT(Q)

Lowest at JPY 2,831.2 MM

Here's what is working for TRE Holdings Corp.

Cash and Eqv

Highest at JPY 60,270 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 33.71 %

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 7.17

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for TRE Holdings Corp.

Interest

At JPY 394 MM has Grown at 115.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 3,085 MM has Fallen at -52.33%

over average net sales of the previous four periods of JPY 6,471.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

At JPY 27,605 MM has Fallen at -10.4%

over average net sales of the previous four periods of JPY 30,808.5 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 3,063.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 27,605 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 5,606 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 20.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 3,085 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 2,831.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 23.97 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 54.55%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 26.93% (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