Verite Co., Ltd. (9904) 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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Why is Verite Co., Ltd. ?

Weak Long Term Fundamental Strength with a 3.73% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 3.73% over the last 5 years

Negative results in Jun 26

PRE-TAX PROFIT(Q) At JPY 53 MM has Fallen at -67.28%
NET PROFIT(Q) At JPY 21 MM has Fallen at -80.04%
ROCE(HY) Lowest at 9.47%

With ROE of 11.96%, it has a very attractive valuation with a 1.38 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 -35.29%, its profits have risen by 11.7% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 0.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -35.29% 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 hold?

Overall Portfolio exposure to Verite Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Verite Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Verite Co., Ltd.

-100.0%

-1.13

33.20%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.73%

EBIT Growth (5y)

2.15%

EBIT to Interest (avg)

97.13

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.32

Tax Ratio

37.48%

Dividend Payout Ratio

176.79%

Pledged Shares

Institutional Holding

ROCE (avg)

22.46%

ROE (avg)

12.68%

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

1.38

EV to EBIT

6.72

EV to EBITDA

5.91

EV to Capital Employed

1.41

EV to Sales

0.65

PEG Ratio

0.98

Dividend Yield

0.90%

ROCE (Latest)

21.05%

ROE (Latest)

11.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

7What is working for the Company

NET SALES(HY)

At JPY 5,026 MM has Grown at 29.07%

CASH AND EQV(HY)

Highest at JPY 5,883 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 0.98 times

DEBTORS TURNOVER RATIO(HY)

Highest at 24.03 times

-22What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 53 MM has Fallen at -67.28%

NET PROFIT(Q)

At JPY 21 MM has Fallen at -80.04%

ROCE(HY)

Lowest at 9.47%

NET SALES(Q)

At JPY 2,088 MM has Fallen at -11.53%

DIVIDEND PER SHARE(HY)

Lowest at JPY 24.03

INTEREST(Q)

Highest at JPY 9 MM

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

Cash and Eqv

Highest at JPY 5,883 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 0.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 24.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Verite Co., Ltd.

Pre-Tax Profit

At JPY 53 MM has Fallen at -67.28%

over average net sales of the previous four periods of JPY 162 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 21 MM has Fallen at -80.04%

over average net sales of the previous four periods of JPY 105.19 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 2,088 MM has Fallen at -11.53%

over average net sales of the previous four periods of JPY 2,360.25 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 9 MM has Grown at 12.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 9 MM

in the last five periods and Increased by 12.5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend per share

Lowest at JPY 24.03

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)