ScoreWhy is TWOSTONE&Sons Co., Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 34.96%
- Healthy long term growth as Net Sales has grown by an annual rate of 47.79% and Operating profit at 79.33%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 47.98
2
The company has declared Positive results for the last 3 consecutive quarters
- RAW MATERIAL COST(Y) Fallen by -38.51% (YoY)
- CASH AND EQV(HY) Highest at JPY 8,637.32 MM
- NET SALES(Q) Highest at JPY 5,740.49 MM
3
With ROCE of 70.19%, it has a attractive valuation with a 24.96 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 -49.51%, its profits have risen by 460.7% ; the PEG ratio of the company is 0.4
4
Below par performance in long term as well as near term
- Along with generating -49.51% 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 ReportHow much should you hold?
- Overall Portfolio exposure to TWOSTONE&Sons Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Diversified Commercial Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified Commercial Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is TWOSTONE&Sons Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
TWOSTONE&Sons Co., Ltd.
-49.51%
-1.17
53.17%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
47.79%
EBIT Growth (5y)
79.33%
EBIT to Interest (avg)
48.19
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.49
Sales to Capital Employed (avg)
3.09
Tax Ratio
37.23%
Dividend Payout Ratio
4.39%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
34.97%
ROE (avg)
17.17%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
61
Industry P/E
Price to Book Value
13.17
EV to EBIT
35.56
EV to EBITDA
30.85
EV to Capital Employed
24.96
EV to Sales
2.58
PEG Ratio
0.35
Dividend Yield
NA
ROCE (Latest)
70.19%
ROE (Latest)
21.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -38.51% (YoY
CASH AND EQV(HY)
Highest at JPY 8,637.32 MM
NET SALES(Q)
Highest at JPY 5,740.49 MM
OPERATING PROFIT(Q)
Highest at JPY 745.27 MM
OPERATING PROFIT MARGIN(Q)
Highest at 12.98 %
PRE-TAX PROFIT(Q)
Highest at JPY 626.38 MM
NET PROFIT(Q)
Highest at JPY 367.22 MM
EPS(Q)
Highest at JPY 7.69
-12What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.28 times
INTEREST(Q)
Highest at JPY 9.77 MM
Here's what is working for TWOSTONE&Sons Co., Ltd.
Net Sales
At JPY 5,740.49 MM has Grown at 38.75%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 626.38 MM has Grown at 121.78%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Sales
Highest at JPY 5,740.49 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 745.27 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 12.98 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 626.38 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 367.22 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 367.22 MM has Grown at 91.46%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 7.69
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 8,637.32 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -38.51% (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 115.51 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 115.51 MM has Grown at 42.73%
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 TWOSTONE&Sons Co., Ltd.
Interest
At JPY 9.77 MM has Grown at 11.04%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 9.77 MM
in the last five periods and Increased by 11.04% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 7.28 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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