Universal Entertainment Corp. (6425) 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

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Universal Entertainment Corp.

Why is Universal Entertainment Corp. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.29%

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.25 times

The company has declared Negative results for the last 4 consecutive quarters

PRE-TAX PROFIT(Q) At JPY -1,362 MM has Fallen at -121.23%
ROCE(HY) Lowest at -92.68%
DEBT-EQUITY RATIO (HY) Highest at 118.94 %

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -35.26%, its profits have fallen by -326.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -35.26% 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 Diversified)

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

Is Universal Entertainment Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Universal Entertainment Corp.

-100.0%

-1.24

45.65%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.59%

EBIT Growth (5y)

-188.21%

EBIT to Interest (avg)

0.50

Debt to EBITDA (avg)

4.25

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.30

Tax Ratio

26.28%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

2.29%

ROE (avg)

0.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.23

EV to EBIT

-35.78

EV to EBITDA

13.42

EV to Capital Employed

0.40

EV to Sales

1.51

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.11%

ROE (Latest)

-8.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

11What is working for the Company

NET PROFIT(Q)

Highest at JPY 8,479 MM

-10What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -1,362 MM has Fallen at -121.23%

ROCE(HY)

Lowest at -92.68%

DEBT-EQUITY RATIO (HY)

Highest at 118.94 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.59 times

NET SALES(Q)

Fallen at -10.92%

INTEREST(Q)

Highest at JPY 4,136 MM

EPS(Q)

Lowest at JPY -2,849.06

Here's what is working for Universal Entertainment Corp.

Net Profit

Highest at JPY 8,479 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 8,479 MM has Grown at 113.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Depreciation

Highest at JPY 5,115 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Universal Entertainment Corp.

Pre-Tax Profit

At JPY -1,362 MM has Fallen at -121.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

Fallen at -10.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 4,136 MM

in the last five periods and Increased by 8.27% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -2,849.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 118.94 %

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

Inventory Turnover Ratio

Lowest at 1.59 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio