Treasure Factory Co., Ltd. (3093) 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

Komehyo Holdings Co., Ltd.

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G-7 Holdings, Inc.

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Treasure Factory Co., Ltd.

Shinnihonseiyaku Co., Ltd.

ITOCHU ENEX CO., LTD.

KU Holdings Co., Ltd.

IDOM, Inc.

Mie Kotsu Group Holdings, Inc.

Why is Treasure Factory Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 23.57%

Healthy long term growth as Net Sales has grown by an annual rate of 20.46% and Operating profit at 81.32%
Company has very low debt and has enough cash to service the debt requirements

The company has declared Negative results for the last 3 consecutive quarters

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBTORS TURNOVER RATIO(HY) Lowest at 31.71 times
DIVIDEND PER SHARE(HY) Lowest at JPY 31.71

With ROCE of 26.68%, it has a attractive valuation with a 2.89 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 -1.94%, its profits have risen by 15.6% ; the PEG ratio of the company is 0.9

Below par performance in long term as well as near term

Along with generating -1.94% 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 Treasure Factory Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Treasure Factory Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Treasure Factory Co., Ltd.

2.85%

0.03

33.15%

Japan Nikkei 225

69.64%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.46%

EBIT Growth (5y)

81.32%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

1.09

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

2.49

Tax Ratio

31.50%

Dividend Payout Ratio

29.57%

Pledged Shares

Institutional Holding

ROCE (avg)

23.57%

ROE (avg)

23.11%

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

3.64

EV to EBIT

10.82

EV to EBITDA

9.09

EV to Capital Employed

2.89

EV to Sales

1.02

PEG Ratio

0.89

Dividend Yield

ROCE (Latest)

26.68%

ROE (Latest)

26.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.82% (YoY

CASH AND EQV(HY)

Highest at JPY 8,270 MM

DEBT-EQUITY RATIO (HY)

Lowest at 17.34 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.32 times

NET SALES(Q)

Highest at JPY 13,399 MM

NET PROFIT(Q)

Highest at JPY 1,139.13 MM

-14What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 31.71 times

DIVIDEND PER SHARE(HY)

Lowest at JPY 31.71

INTEREST(Q)

Highest at JPY 16 MM

Here's what is working for Treasure Factory Co., Ltd.

Net Sales

Highest at JPY 13,399 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 1,139.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 8,270 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 17.34 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.82% (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 Treasure Factory Co., Ltd.

Interest

At JPY 16 MM has Grown at 14.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 16 MM

in the last five periods and Increased by 14.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 31.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at JPY 31.71

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)