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
Negative results in Jun 25
- INTEREST(9M) At JPY 11 MM has Grown at 83.33%
- NET SALES(Q) At JPY 1,699 MM has Fallen at -14.48%
- DEBT-EQUITY RATIO (HY) Highest at -7.91 %
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 1.89%, 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 1.89% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%
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.
2.16%
-0.23
12.43%
Japan Nikkei 225
28.54%
1.14
25.81%
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)
1.32
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
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.52% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 16.53%
-23What is not working for the Company
INTEREST(9M)
At JPY 11 MM has Grown at 83.33%
NET SALES(Q)
At JPY 1,699 MM has Fallen at -14.48%
DEBT-EQUITY RATIO
(HY)
Highest at -7.91 %
OPERATING PROFIT(Q)
Lowest at JPY -19 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -1.12 %
PRE-TAX PROFIT(Q)
Lowest at JPY -54 MM
NET PROFIT(Q)
Lowest at JPY -66 MM
EPS(Q)
Lowest at JPY -2.43
Here's what is working for Verite Co., Ltd.
Debtors Turnover Ratio
Highest at 16.53%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -1.52% (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
Here's what is not working for Verite Co., Ltd.
Interest
At JPY 8 MM has Grown at 100%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
At JPY 1,699 MM has Fallen at -14.48%
over average net sales of the previous four periods of JPY 1,986.75 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Pre-Tax Profit
At JPY -54 MM has Fallen at -123.53%
over average net sales of the previous four periods of JPY 229.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -66 MM has Fallen at -146.34%
over average net sales of the previous four periods of JPY 142.41 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Operating Profit
Lowest at JPY -19 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at -1.12 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY -54 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -66 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -2.43
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Highest at -7.91 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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