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

JAC Recruitment Co., Ltd.

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Altech Corp.

Fullcast Holdings Co., Ltd.

Open Up Group, Inc.

WDB Holdings Co., Ltd.

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Pasona Group, Inc.

World Holdings Co., Ltd.

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 2.96% and Operating profit at -2.46% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 8.52%
NET SALES(Q) Lowest at JPY 12,182.35 MM
OPERATING PROFIT(Q) Lowest at JPY 1,023.19 MM

With ROE of 10.14%, it has a very attractive valuation with a 0.97 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 -0.63%, its profits have fallen by -6.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.63% 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.

-0.63%

-0.14

22.80%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.96%

EBIT Growth (5y)

-2.46%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

1.63

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

0.97

EV to EBIT

3.24

EV to EBITDA

3.01

EV to Capital Employed

0.95

EV to Sales

0.29

PEG Ratio

Dividend Yield

ROCE (Latest)

29.20%

ROE (Latest)

10.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 145.25%

RAW MATERIAL COST(Y)

Fallen by -5.88% (YoY

-9What is not working for the Company

ROCE(HY)

Lowest at 8.52%

NET SALES(Q)

Lowest at JPY 12,182.35 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,023.19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.4 %

PRE-TAX PROFIT(Q)

Lowest at JPY 916.98 MM

NET PROFIT(Q)

Lowest at JPY 495.26 MM

EPS(Q)

Lowest at JPY 25.82

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

Dividend Payout Ratio

Highest at 145.25% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -5.88% (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 WDB Holdings Co., Ltd.

Net Sales

Lowest at JPY 12,182.35 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 1,023.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 916.98 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 495.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -38.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 25.82

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)