TSI Holdings Co., Ltd. (3608) 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

ASICS Corp.

Ryohin Keikaku Co., Ltd.

Shoei Co. Ltd. (7839)

ABC-MART, INC.

Mizuno Corp.

Onward Holdings Co., Ltd.

GOLDWIN INC.

TSI Holdings Co., Ltd.

Gunze Ltd.

Wacoal Holdings Corp.

Descente Ltd.

Why is TSI Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROE of 10.63%

The company has been able to generate a Return on Equity (avg) of 10.63% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 22.48

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 22.48
The company has been able to generate a Return on Capital Employed (avg) of 2.47% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 4.50% over the last 5 years

Negative results in May 26

NET PROFIT(HY) At JPY 2,922.8 MM has Grown at -83.69%
DEBT-EQUITY RATIO (HY) Highest at 23.5 %
INTEREST(Q) Highest at JPY 199 MM

With ROE of 4.33%, it has a very attractive valuation with a 0.73 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 13.16%, its profits have fallen by -74.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TSI Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is TSI Holdings Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

TSI Holdings Co., Ltd.

14.17%

684.62

33.87%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.50%

EBIT Growth (5y)

18.79%

EBIT to Interest (avg)

28.01

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

1.38

Tax Ratio

52.42%

Dividend Payout Ratio

66.15%

Pledged Shares

Institutional Holding

ROCE (avg)

3.40%

ROE (avg)

10.63%

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

0.73

EV to EBIT

20.55

EV to EBITDA

9.16

EV to Capital Employed

0.77

EV to Sales

0.53

PEG Ratio

Dividend Yield

ROCE (Latest)

3.74%

ROE (Latest)

4.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

9What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.83 times

DEBTORS TURNOVER RATIO(HY)

Highest at 13.1 times

NET SALES(Q)

At JPY 46,279 MM has Grown at 29.98%

PRE-TAX PROFIT(Q)

At JPY 3,578 MM has Grown at 68.93%

EPS(Q)

Highest at JPY 36.64

-20What is not working for the Company

NET PROFIT(HY)

At JPY 2,922.8 MM has Grown at -83.69%

DEBT-EQUITY RATIO (HY)

Highest at 23.5 %

INTEREST(Q)

Highest at JPY 199 MM

Here's what is working for TSI Holdings Co., Ltd.

Net Sales

At JPY 46,279 MM has Grown at 29.98%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 3,578 MM has Grown at 68.93%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 36.64

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 2.83 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 13.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Net Profit

At JPY 2,922.8 MM has Grown at -83.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 199 MM has Grown at 54.26%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 199 MM

in the last five periods and Increased by 54.26% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 23.5 %

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