Watahan & Co., Ltd. (3199) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Takebishi Corp.

Kanaden Corp.

Yashima Denki Co., Ltd.

JK Holdings Co., Ltd.

Meiwa Corp.

Maruzen CHI Holdings Co., Ltd.

Seika Corp.

Soft99 Corp.

Sumiseki Holdings, Inc.

Watahan & Co., Ltd.

Beauty Garage, Inc.

Why is Watahan & Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 5.84% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 5.84% of over the last 5 years

Negative results in Jun 25

NET PROFIT(HY) At JPY 399.7 MM has Grown at -59.65%
INTEREST COVERAGE RATIO(Q) Lowest at 2,828.57
RAW MATERIAL COST(Y) Grown by 12.14% (YoY)

With ROCE of 7.65%, it has a very attractive valuation with a 1.17 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 -5.08%, its profits have risen by 32.7% ; the PEG ratio of the company is 0.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.08% 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 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 Trading & Distributors)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Watahan & Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Watahan & Co., Ltd.

-7.24%

-0.61

20.66%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.14%

EBIT Growth (5y)

5.84%

EBIT to Interest (avg)

42.38

Debt to EBITDA (avg)

3.95

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

2.74

Tax Ratio

40.68%

Dividend Payout Ratio

27.73%

Pledged Shares

Institutional Holding

ROCE (avg)

7.51%

ROE (avg)

10.15%

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

1.34

EV to EBIT

15.33

EV to EBITDA

9.50

EV to Capital Employed

1.17

EV to Sales

0.40

PEG Ratio

0.36

Dividend Yield

ROCE (Latest)

7.65%

ROE (Latest)

11.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 8.09%

-22What is not working for the Company

NET PROFIT(HY)

At JPY 399.7 MM has Grown at -59.65%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,828.57

RAW MATERIAL COST(Y)

Grown by 12.14% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.16%

INTEREST(Q)

Highest at JPY 42 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 808 MM

Here's what is working for Watahan & Co., Ltd.

Debtors Turnover Ratio

Highest at 8.09%

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 Watahan & Co., Ltd.

Net Profit

At JPY 399.7 MM has Grown at -59.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 42 MM has Grown at 55.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,828.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 42 MM

in the last five periods and Increased by 55.56% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 808 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 5.16%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 12.14% (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