ScoreWhy is Verite Co., Ltd. ?
1
High Management Efficiency with a high ROE of 12.68%
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of 0.18% over the last 5 years
4
Flat results in Dec 25
- RAW MATERIAL COST(Y) Grown by 5.84% (YoY)
- INTEREST(Q) Highest at JPY 8 MM
5
With ROE of 12.75%, it has a very attractive valuation with a 2.30 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 10.27%, its profits have risen by 11.1% ; the PEG ratio of the company is 1.6
- At the current price, the company has a high dividend yield of 0.5
6
Underperformed the market in the last 1 year
- The stock has generated a return of 10.27% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
Real-Time Research ReportHow 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%
0.35
14.52%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.18%
EBIT Growth (5y)
7.47%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.11
Sales to Capital Employed (avg)
1.31
Tax Ratio
37.84%
Dividend Payout Ratio
88.22%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
22.34%
ROE (avg)
12.68%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
2.30
EV to EBIT
11.19
EV to EBITDA
9.86
EV to Capital Employed
2.46
EV to Sales
1.23
PEG Ratio
1.63
Dividend Yield
0.53%
ROCE (Latest)
22.02%
ROE (Latest)
12.75%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 0.87 times
NET SALES(Q)
Highest at JPY 2,582 MM
-12What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 5.84% (YoY
INTEREST(Q)
Highest at JPY 8 MM
Here's what is working for Verite Co., Ltd.
Net Sales
At JPY 2,582 MM has Grown at 24.95%
over average net sales of the previous four periods of JPY 2,066.5 MMMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
Highest at JPY 2,582 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Inventory Turnover Ratio
Highest at 0.87 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Verite Co., Ltd.
Interest
At JPY 8 MM has Grown at 60%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 8 MM
in the last five periods and Increased by 60% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Raw Material Cost
Grown by 5.84% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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