Valqua Ltd. (7995) 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

Obara Group, Inc.

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KITZ Corp.

Eagle Industry Co. Ltd.

Noritz Corp.

Valqua Ltd.

Krosaki Harima Corp.

METAWATER Co., Ltd.

Tsurumi Manufacturing Co., Ltd.

Noritake Co., Ltd.

OPTORUN Co., Ltd.

Why is Valqua Ltd. ?

High Management Efficiency with a high ROE of 11.96%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 62.06

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 125 MM has Grown at 20.19%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.68 times
DEBT-EQUITY RATIO (HY) Highest at 16.96 %

With ROE of 12.06%, it has a very attractive valuation with a 1.80 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 169.93%, its profits have risen by 48.8% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 169.93% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 85.12%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Valqua Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Valqua Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Valqua Ltd.

164.34%

3.32

37.33%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.28%

EBIT Growth (5y)

15.30%

EBIT to Interest (avg)

62.06

Debt to EBITDA (avg)

0.22

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.98

Tax Ratio

23.91%

Dividend Payout Ratio

56.44%

Pledged Shares

Institutional Holding

ROCE (avg)

14.83%

ROE (avg)

11.96%

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

1.80

EV to EBIT

16.29

EV to EBITDA

11.28

EV to Capital Employed

1.66

EV to Sales

1.80

PEG Ratio

0.31

Dividend Yield

ROCE (Latest)

10.17%

ROE (Latest)

12.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

No Trend

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

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -9.99% (YoY

NET SALES(Q)

Highest at JPY 16,253 MM

OPERATING PROFIT(Q)

Highest at JPY 7,163 MM

OPERATING PROFIT MARGIN(Q)

Highest at 44.07 %

-12What is not working for the Company

INTEREST(HY)

At JPY 125 MM has Grown at 20.19%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.68 times

DEBT-EQUITY RATIO (HY)

Highest at 16.96 %

NET PROFIT(Q)

Fallen at -33.93%

Here's what is working for Valqua Ltd.

Net Sales

Highest at JPY 16,253 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 7,163 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 44.07 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -9.99% (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 4,947 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 4,947 MM has Grown at 576.74%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Valqua Ltd.

Interest

At JPY 125 MM has Grown at 20.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 1.68 times 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

Net Profit

Fallen at -33.93%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 16.96 %

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