Why is Weds Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 2.65% over the last 5 years
3
Negative results in Mar 26
- ROCE(HY) Lowest at 5.59%
- DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
- NET PROFIT(Q) Lowest at JPY -4,588.98 MM
4
With ROE of 7.67%, it has a very attractive valuation with a 0.63 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 10.53%, its profits have fallen by -18.6%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 10.53% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
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.
10.53%
0.12
20.84%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality key factors
Factor
Value
Sales Growth (5y)
2.65%
EBIT Growth (5y)
7.81%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.44
Sales to Capital Employed (avg)
1.94
Tax Ratio
31.80%
Dividend Payout Ratio
30.26%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
19.31%
ROE (avg)
9.39%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.63
EV to EBIT
2.83
EV to EBITDA
2.30
EV to Capital Employed
0.45
EV to Sales
0.16
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
15.92%
ROE (Latest)
7.67%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -5.32% (YoY
CASH AND EQV(HY)
Highest at JPY 16,301.12 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -43.61 %
DEBTORS TURNOVER RATIO(HY)
Highest at 9.42 times
PRE-TAX PROFIT(Q)
At JPY 360.33 MM has Grown at 109.59%
-16What is not working for the Company
ROCE(HY)
Lowest at 5.59%
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
NET PROFIT(Q)
Lowest at JPY -4,588.98 MM
EPS(Q)
Lowest at JPY -13.17
Here's what is working for Weds Co., Ltd.
Pre-Tax Profit
At JPY 360.33 MM has Grown at 109.59%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Cash and Eqv
Highest at JPY 16,301.12 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -43.61 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 9.42 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -5.32% (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 124.73 MM
in the last five periodsMOJO 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 Profit
At JPY -4,588.98 MM has Fallen at -6,014.64%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Net Profit
Lowest at JPY -4,588.98 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -13.17
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Non Operating Income
Highest at JPY 12.84 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






