ScoreWhy is Watts Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Operating profit has grown by an annual rate 3.09% of over the last 5 years
3
Negative results in May 25
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.36%
- DEBTORS TURNOVER RATIO(HY) Lowest at 19.39%
- INTEREST COVERAGE RATIO(Q) Lowest at 4,612.14
4
With ROE of 7.69%, it has a very attractive valuation with a 0.75 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 -10.43%, its profits have risen by 60.3% ; the PEG ratio of the company is 0.2
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -10.43% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Watts 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 Watts Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Watts Co., Ltd.
-10.32%
-0.33
27.22%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.51%
EBIT Growth (5y)
3.09%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.24
Sales to Capital Employed (avg)
3.90
Tax Ratio
33.26%
Dividend Payout Ratio
29.22%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
16.21%
ROE (avg)
7.30%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.75
EV to EBIT
4.91
EV to EBITDA
3.03
EV to Capital Employed
0.67
EV to Sales
0.11
PEG Ratio
0.16
Dividend Yield
NA
ROCE (Latest)
13.58%
ROE (Latest)
7.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.93% (YoY
CASH AND EQV(HY)
Highest at JPY 15,283.41 MM
-28What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.36%
DEBTORS TURNOVER RATIO(HY)
Lowest at 19.39%
INTEREST COVERAGE RATIO(Q)
Lowest at 4,612.14
INTEREST(Q)
Highest at JPY 9.76 MM
PRE-TAX PROFIT(Q)
Lowest at JPY 148.92 MM
NET PROFIT(Q)
Lowest at JPY 58.21 MM
EPS(Q)
Lowest at JPY 4.23
Here's what is working for Watts Co., Ltd.
Cash and Eqv
Highest at JPY 15,283.41 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 0.93% (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
Depreciation
Highest at JPY 247.74 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Watts Co., Ltd.
Pre-Tax Profit
At JPY 148.92 MM has Fallen at -55.95%
over average net sales of the previous four periods of JPY 338.09 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 58.21 MM has Fallen at -76.4%
over average net sales of the previous four periods of JPY 246.7 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 9.76 MM has Grown at 122.62%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 4,612.14
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Inventory Turnover Ratio
Lowest at 3.36% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 19.39% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
Highest at JPY 9.76 MM
in the last five periods and Increased by 122.62% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
Lowest at JPY 148.92 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 58.21 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 4.23
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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