ScoreWhy is Watts Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 7.22%
- The company has been able to generate a Return on Equity (avg) of 7.22% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a -6.76% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 7.22% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Operating profit has grown by an annual rate -6.76% of over the last 5 years
4
Flat results in May 26
- DEBTORS TURNOVER RATIO(HY) Lowest at 17.69 times
- CASH AND EQV(HY) Lowest at JPY 9,333.3 MM
- DEBT-EQUITY RATIO (HY) Highest at -17.94 %
5
With ROE of 6.34%, it has a fair valuation with a 0.61 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 -0.29%, its profits have fallen by -13.8%
6
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.29% returns
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.
0.59%
-0.09
17.33%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.54%
EBIT Growth (5y)
-6.76%
EBIT to Interest (avg)
78.46
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
3.90
Tax Ratio
38.61%
Dividend Payout Ratio
34.85%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.02%
ROE (avg)
7.22%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.60
EV to EBIT
3.73
EV to EBITDA
2.25
EV to Capital Employed
0.51
EV to Sales
0.09
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
13.58%
ROE (Latest)
6.34%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.43% (YoY
NET SALES(Q)
Highest at JPY 16,735.66 MM
NET PROFIT(Q)
Highest at JPY 313.73 MM
EPS(Q)
Highest at JPY 23.59
-4What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 17.69 times
CASH AND EQV(HY)
Lowest at JPY 9,333.3 MM
DEBT-EQUITY RATIO
(HY)
Highest at -17.94 %
Here's what is working for Watts Co., Ltd.
Net Sales
Highest at JPY 16,735.66 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Profit
Highest at JPY 313.73 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 23.59
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -1.43% (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 Watts Co., Ltd.
Debtors Turnover Ratio
Lowest at 17.69 times 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
Cash and Eqv
Lowest at JPY 9,333.3 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at -17.94 %
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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