Why is UNITED ARROWS LTD. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 9.31%
- Company has very low debt and has enough cash to service the debt requirements
- NET PROFIT(HY) At JPY 1,372.06 MM has Grown at -46.16%
- OPERATING CASH FLOW(Y) Lowest at JPY 3,455 MM
- ROCE(HY) Lowest at 10.79%
2
With ROE of 12.56%, it has a very attractive valuation with a 1.70 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 -14.82%, its profits have fallen by -5.7%
3
Below par performance in long term as well as near term
- Along with generating -14.82% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to UNITED ARROWS 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 UNITED ARROWS LTD. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
UNITED ARROWS LTD.
-14.82%
0.83
27.81%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
-0.84%
EBIT Growth (5y)
-1.84%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.16
Net Debt to Equity (avg)
-0.15
Sales to Capital Employed (avg)
3.68
Tax Ratio
39.54%
Dividend Payout Ratio
40.61%
Pledged Shares
0
Institutional Holding
0.09%
ROCE (avg)
15.30%
ROE (avg)
9.31%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.70
EV to EBIT
7.32
EV to EBITDA
5.55
EV to Capital Employed
1.82
EV to Sales
0.39
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
24.81%
ROE (Latest)
12.56%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.08% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 13.78%
-19What is not working for the Company
NET PROFIT(HY)
At JPY 1,372.06 MM has Grown at -46.16%
OPERATING CASH FLOW(Y)
Lowest at JPY 3,455 MM
ROCE(HY)
Lowest at 10.79%
DEBT-EQUITY RATIO
(HY)
Highest at 2.99 %
INTEREST(Q)
Highest at JPY 6 MM
Here's what is working for UNITED ARROWS LTD.
Debtors Turnover Ratio
Highest at 13.78%
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 -1.08% (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 855 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 UNITED ARROWS LTD.
Net Profit
At JPY 1,372.06 MM has Grown at -46.16%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 6 MM has Grown at 20%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Cash Flow
Lowest at JPY 3,455 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Interest
Highest at JPY 6 MM
in the last five periods and Increased by 20% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 2.99 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






