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
- NET PROFIT(HY) Higher at JPY 380.98 MM
- RAW MATERIAL COST(Y) Fallen by -4.92% (YoY)
- DEBT-EQUITY RATIO (HY) Lowest at -43.08 %
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 -50.95%, 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 -50.95% 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.
-100.0%
-1.11
49.01%
Japan Nikkei 225
38.59%
1.45
26.59%
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
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend20What is working for the Company
NET PROFIT(HY)
Higher at JPY 380.98 MM
RAW MATERIAL COST(Y)
Fallen by -4.92% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -43.08 %
DEBTORS TURNOVER RATIO(HY)
Highest at 8.52%
NET SALES(Q)
At JPY 4,493.46 MM has Grown at 25.12%
-18What is not working for the Company
INTEREST(Q)
At JPY 6.86 MM has Grown at 10.8%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,919.32
INVENTORY TURNOVER RATIO(HY)
Lowest at 0%
OPERATING PROFIT MARGIN(Q)
Lowest at 2.93 %
PRE-TAX PROFIT(Q)
Lowest at JPY 74.29 MM
NET PROFIT(Q)
Lowest at JPY 32.86 MM
EPS(Q)
Lowest at JPY 0.69
Here's what is working for TWOSTONE&Sons Co., Ltd.
Net Sales
At JPY 4,493.46 MM has Grown at 25.12%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Debt-Equity Ratio
Lowest at -43.08 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 8.52%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -4.92% (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 50.56 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for TWOSTONE&Sons Co., Ltd.
Interest
At JPY 6.86 MM has Grown at 10.8%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 1,919.32
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 6.86 MM
in the last five periods and Increased by 10.8% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 2.93 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 74.29 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 32.86 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 0.69
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Lowest at 0%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
