WDB Holdings Co., Ltd. (2475) 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

UT Group Co., Ltd.

Open Up Group, Inc.

JAC Recruitment Co., Ltd.

Altech Corp.

PERSOL Holdings Co., Ltd.

World Holdings Co., Ltd.

WDB Holdings Co., Ltd.

Pasona Group, Inc.

Fullcast Holdings Co., Ltd.

Link & Motivation, Inc.

en Japan, Inc.

Why is WDB Holdings Co., Ltd. ?

High Management Efficiency with a high ROE of 14.14%

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 3.47% and Operating profit at 0.45% over the last 5 years

Flat results in Dec 25

ROCE(HY) Lowest at 9.66%
CASH AND EQV(HY) Lowest at JPY 34,145.6 MM
DEBT-EQUITY RATIO (HY) Highest at -50.96 %

With ROE of 10.54%, it has a very attractive valuation with a 1.17 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 -18.87%, its profits have fallen by -12.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.87% 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 WDB Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Diversified Commercial Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified Commercial Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is WDB Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

WDB Holdings Co., Ltd.

-100.0%

-0.48

27.92%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.47%

EBIT Growth (5y)

0.45%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

1.65

Tax Ratio

33.83%

Dividend Payout Ratio

40.23%

Pledged Shares

Institutional Holding

ROCE (avg)

89.39%

ROE (avg)

14.14%

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

1.17

EV to EBIT

3.32

EV to EBITDA

3.14

EV to Capital Employed

1.49

EV to Sales

0.33

PEG Ratio

Dividend Yield

ROCE (Latest)

44.78%

ROE (Latest)

10.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.68% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 7.84 times

-4What is not working for the Company

ROCE(HY)

Lowest at 9.66%

CASH AND EQV(HY)

Lowest at JPY 34,145.6 MM

DEBT-EQUITY RATIO (HY)

Highest at -50.96 %

Here's what is working for WDB Holdings Co., Ltd.

Debtors Turnover Ratio

Highest at 7.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.68% (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 122.92 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 122.92 MM has Grown at 98.42%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for WDB Holdings Co., Ltd.

Cash and Eqv

Lowest at JPY 34,145.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -50.96 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at JPY 0.04 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income