Umenohana Co., Ltd. (7604) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Hachi-Ban Co., Ltd.

Ten Allied Co., Ltd.

Umenohana Co., Ltd.

Asakuma Co., Ltd.

Why is Umenohana Co., Ltd. ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Net Sales has grown by an annual rate of -2.31% and Operating profit at 41.85% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a fall in Net Sales of -2.7%, the company declared Very Negative results in Apr 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At JPY 71.91 MM has Grown at 82.49%
NET PROFIT(HY) At JPY 348.53 MM has Grown at -57.15%
PRE-TAX PROFIT(Q) At JPY 33.23 MM has Fallen at -84.44%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -8.75%, its profits have risen by 1.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.75% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Umenohana Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Umenohana Co., Ltd.

-8.75%

-1.88

9.88%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.31%

EBIT Growth (5y)

41.85%

EBIT to Interest (avg)

-6.51

Debt to EBITDA (avg)

11.29

Net Debt to Equity (avg)

6.20

Sales to Capital Employed (avg)

1.43

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.76%

ROE (avg)

10.41%

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

3.20

EV to EBIT

33.32

EV to EBITDA

14.76

EV to Capital Employed

1.31

EV to Sales

0.75

PEG Ratio

Dividend Yield

ROCE (Latest)

3.92%

ROE (Latest)

28.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.75% (YoY

-29What is not working for the Company

INTEREST(HY)

At JPY 71.91 MM has Grown at 82.49%

NET PROFIT(HY)

At JPY 348.53 MM has Grown at -57.15%

PRE-TAX PROFIT(Q)

At JPY 33.23 MM has Fallen at -84.44%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.86%

CASH AND EQV(HY)

Lowest at JPY 5,569.36 MM

DEBT-EQUITY RATIO (HY)

Highest at 767.41 %

EPS(Q)

Lowest at JPY -50.72

Here's what is working for Umenohana Co., Ltd.

Raw Material Cost

Fallen by 1.75% (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 Umenohana Co., Ltd.

Pre-Tax Profit

At JPY 33.23 MM has Fallen at -84.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -27.23 MM has Fallen at -106.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 37.88 MM has Grown at 11.27%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 4.86% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 37.88 MM

in the last five periods and Increased by 11.27% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -50.72

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 5,569.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 767.41 %

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