Why is Washington Hotel Corp. ?
1
High Debt company with Weak Long Term Fundamental Strength
- The company is Net-Debt Free
- The company has been able to generate a Return on Capital Employed (avg) of 7.14% signifying low profitability per unit of total capital (equity and debt)
2
Flat results in Jun 26
- NET PROFIT(HY) At JPY 464.99 MM has Grown at -62.56%
3
With ROCE of 19.33%, it has a fair valuation with a 1.78 Enterprise value to Capital Employed
- 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 34.29%, its profits have risen by 96.7% ; the PEG ratio of the company is 0.1
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Washington Hotel Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Washington Hotel Corp.
31.61%
2.61
63.89%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality key factors
Factor
Value
Sales Growth (5y)
28.28%
EBIT Growth (5y)
21.00%
EBIT to Interest (avg)
1.95
Debt to EBITDA (avg)
2.95
Net Debt to Equity (avg)
1.04
Sales to Capital Employed (avg)
0.82
Tax Ratio
6.46%
Dividend Payout Ratio
15.87%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.05%
ROE (avg)
16.98%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
2.23
EV to EBIT
9.23
EV to EBITDA
6.96
EV to Capital Employed
1.78
EV to Sales
1.44
PEG Ratio
0.08
Dividend Yield
NA
ROCE (Latest)
19.33%
ROE (Latest)
28.09%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -0.81% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 442.22 times
-4What is not working for the Company
NET PROFIT(HY)
At JPY 464.99 MM has Grown at -62.56%
Here's what is working for Washington Hotel Corp.
Inventory Turnover Ratio
Highest at 442.22 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -0.81% (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 Washington Hotel Corp.
Net Profit
At JPY 464.99 MM has Grown at -62.56%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
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