Weathernews, Inc. (4825) 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

SBS Holdings, Inc.

Mitsubishi Research Institute, Inc.

insource Co., Ltd.

Prestige International Inc.

Weathernews, Inc.

TRYT, Inc.

INTAGE HOLDINGS, Inc.

Bengo4.com, Inc.

eGuarantee, Inc.

GMO Financial Gate, Inc.

Shin Nippon Biomedical Laboratories, Ltd.

Why is Weathernews, Inc. ?

High Management Efficiency with a high ROE of 13.13%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 16.93% of over the last 5 years

With a growth in Net Profit of 17.45%, the company declared Very Positive results in Feb 26

ROCE(HY) Highest at 17.18%
RAW MATERIAL COST(Y) Fallen by -1.67% (YoY)
CASH AND EQV(HY) Highest at JPY 33,936.18 MM

With ROE of 16.00%, it has a expensive valuation with a 4.26 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 -49.95%, its profits have risen by 41.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -49.95% 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 Weathernews, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Weathernews, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Weathernews, Inc.

-49.95%

-0.22

59.53%

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)

5.62%

EBIT Growth (5y)

16.93%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.79

Sales to Capital Employed (avg)

1.11

Tax Ratio

30.17%

Dividend Payout Ratio

49.73%

Pledged Shares

Institutional Holding

0.13%

ROCE (avg)

61.32%

ROE (avg)

13.13%

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

4.26

EV to EBIT

15.51

EV to EBITDA

14.02

EV to Capital Employed

14.87

EV to Sales

3.30

PEG Ratio

Dividend Yield

ROCE (Latest)

95.88%

ROE (Latest)

16.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

10What is working for the Company

ROCE(HY)

Highest at 17.18%

RAW MATERIAL COST(Y)

Fallen by -1.67% (YoY

CASH AND EQV(HY)

Highest at JPY 33,936.18 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 46.65 times

NET SALES(Q)

Highest at JPY 6,132.22 MM

OPERATING PROFIT(Q)

Highest at JPY 1,624.7 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,639.42 MM

NET PROFIT(Q)

Highest at JPY 1,134.27 MM

EPS(Q)

Highest at JPY 25.53

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 0 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.2 times

Here's what is working for Weathernews, Inc.

Net Sales

Highest at JPY 6,132.22 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,624.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 1,639.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,134.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 25.53

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 33,936.18 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 46.65 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.67% (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 Weathernews, Inc.

Operating Cash Flow

Lowest at JPY 0 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Debtors Turnover Ratio

Lowest at 5.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio