Weds Co., Ltd. (7551) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Takihyo Co., Ltd.

Nexyz.Group Corp.

Yagi & Co., Ltd.

Weds Co., Ltd.

Narasaki Sangyo Co., Ltd.

UEX, Ltd.

Nanyo Corp.

Konoshima Chemical Co., Ltd.

Toba, Inc.

Misumi Co., Ltd.

Ozu Corp.

Why is Weds Co., Ltd. ?

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 3.14% over the last 5 years

Flat results in Jun 25

ROCE(HY) Lowest at 8.69%
NET SALES(Q) Lowest at JPY 6,599.25 MM
OPERATING PROFIT(Q) Lowest at JPY 169.94 MM

With ROE of 9.36%, it has a very attractive valuation with a 0.56 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 5.30%, its profits have fallen by -3.3%

Underperformed the market in the last 1 year

The stock has generated a return of 5.30% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Weds Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Weds Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Weds Co., Ltd.

5.99%

-0.27

10.66%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.14%

EBIT Growth (5y)

11.38%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

2.00

Tax Ratio

31.80%

Dividend Payout Ratio

30.26%

Pledged Shares

Institutional Holding

ROCE (avg)

19.31%

ROE (avg)

9.39%

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

0.56

EV to EBIT

0.93

EV to EBITDA

0.79

EV to Capital Employed

0.22

EV to Sales

0.06

PEG Ratio

Dividend Yield

ROCE (Latest)

23.50%

ROE (Latest)

9.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.32% (YoY

CASH AND EQV(HY)

Highest at JPY 16,862.3 MM

DEBT-EQUITY RATIO (HY)

Lowest at -39.62 %

DEBTORS TURNOVER RATIO(HY)

Highest at 11.15%

-10What is not working for the Company

ROCE(HY)

Lowest at 8.69%

NET SALES(Q)

Lowest at JPY 6,599.25 MM

OPERATING PROFIT(Q)

Lowest at JPY 169.94 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 76.93 MM

NET PROFIT(Q)

Lowest at JPY 34.43 MM

EPS(Q)

Lowest at JPY 2.16

Here's what is working for Weds Co., Ltd.

Cash and Eqv

Highest at JPY 16,862.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -39.62 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 11.15%

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 -6.32% (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 108.15 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

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

Net Sales

Lowest at JPY 6,599.25 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 169.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 76.93 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 34.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 2.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income