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

HARD OFF CORP. Co., Ltd.

Art Vivant Co., Ltd.

Verite Co., Ltd.

SAC'S BAR Holdings, Inc.

MrMax Holdings Ltd.

Paris Miki Holdings, Inc.

BOOKOFF Group Holdings Ltd.

OPTIMUS GROUP Co., Ltd.

WILLPLUS Holdings Corp.

HIMARAYA Co., Ltd.

Golf Digest Online, Inc.

Why is Verite Co., Ltd. ?

High Management Efficiency with a high ROE of 12.68%

Company has very low debt and has enough cash to service the debt requirements

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

Flat results in Mar 26

INTEREST(HY) At JPY 16 MM has Grown at 128.57%
ROCE(HY) Lowest at 7.41%
RAW MATERIAL COST(Y) Grown by 7.43% (YoY)

With ROE of 11.96%, it has a very attractive valuation with a 2.55 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 -42.22%, its profits have risen by 11.7% ; the PEG ratio of the company is 1.8
At the current price, the company has a high dividend yield of 0.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -42.22% 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.

-42.22%

-1.36

31.94%

Japan Nikkei 225

75.22%

2.67

28.15%

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)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.30

Tax Ratio

37.84%

Dividend Payout Ratio

88.22%

Pledged Shares

Institutional Holding

ROCE (avg)

22.34%

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

2.55

EV to EBIT

12.86

EV to EBITDA

11.31

EV to Capital Employed

2.71

EV to Sales

1.25

PEG Ratio

1.82

Dividend Yield

0.48%

ROCE (Latest)

21.05%

ROE (Latest)

11.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly 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

11What is working for the Company

NET PROFIT(9M)

Higher at JPY 486.76 MM

CASH AND EQV(HY)

Highest at JPY 5,679 MM

DEBT-EQUITY RATIO (HY)

Lowest at -20.64 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.09 times

NET SALES(Q)

Highest at JPY 2,938 MM

-12What is not working for the Company

INTEREST(HY)

At JPY 16 MM has Grown at 128.57%

ROCE(HY)

Lowest at 7.41%

RAW MATERIAL COST(Y)

Grown by 7.43% (YoY

PRE-TAX PROFIT(Q)

At JPY 148 MM has Fallen at -31.4%

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

Net Sales

At JPY 2,938 MM has Grown at 35.11%

over average net sales of the previous four periods of JPY 2,174.5 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 2,938 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 5,679 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -20.64 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at JPY 486.76 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Depreciation

Highest at JPY 33 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 Verite Co., Ltd.

Interest

At JPY 16 MM has Grown at 128.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 148 MM has Fallen at -31.4%

over average net sales of the previous four periods of JPY 215.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Raw Material Cost

Grown by 7.43% (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