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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Japan Cash Machine Co., Ltd.

OIZUMI Corp.

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Nagaoka International Corp.

RIZAP GROUP, Inc.

Universal Entertainment Corp.

Toda Kogyo Corp.

Tri Chemical Laboratories Inc.

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

NET SALES(9M) At JPY 96,137 MM has Grown at -18.4%
NET PROFIT(HY) At JPY -13,034 MM has Grown at -858.32%
PRE-TAX PROFIT(Q) At JPY -2,512 MM has Fallen at -2,860.44%

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 -34.95%, its profits have fallen by -326.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.95% 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.

-34.95%

-1.40

40.64%

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)

-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)

0.31

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

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

10What is working for the Company

NET PROFIT(HY)

Higher at JPY -13,034 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by 0.27% (YoY

NET SALES(Q)

Highest at JPY 34,895 MM

OPERATING PROFIT(Q)

Highest at JPY 8,423 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.14 %

-18What is not working for the Company

NET SALES(9M)

At JPY 96,137 MM has Grown at -18.4%

NET PROFIT(HY)

At JPY -13,034 MM has Grown at -858.32%

PRE-TAX PROFIT(Q)

At JPY -2,512 MM has Fallen at -2,860.44%

ROCE(HY)

Lowest at -6.96%

CASH AND EQV(HY)

Lowest at JPY 48,165 MM

Here's what is working for Universal Entertainment Corp.

Net Profit

Higher at JPY -13,034 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Net Sales

Highest at JPY 34,895 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 34,895 MM has Grown at 22.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 8,423 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 24.14 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by 0.27% (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 5,062 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.

Net Profit

At JPY -13,034 MM has Grown at -858.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

At JPY -2,512 MM has Fallen at -2,860.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Cash and Eqv

Lowest at JPY 48,165 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents