Wood One Co., Ltd. (7898) 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

Nihon Decoluxe Co., Ltd.

Wood One Co., Ltd.

Sakata Seed Corp.

UPR Corp.

Nankai Plywood Co., Ltd.

Daiken Corp.

C.S. Lumber Co., Inc.

Kaneko Seeds Co., Ltd.

Takasho Co., Ltd.

Hokushin Co., Ltd.

Seven Industries Co., Ltd.

Why is Wood One Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.88%

The company has been able to generate a Return on Capital Employed (avg) of 1.88% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 0.50% and Operating profit at -7.55% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 2.33% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.50% and Operating profit at -7.55% over the last 5 years

Positive results in Dec 25

NET PROFIT(9M) At JPY 987.3 MM has Grown at 64.06%
ROCE(HY) Highest at 5.17%
RAW MATERIAL COST(Y) Fallen by -2.74% (YoY)

With ROCE of 1.66%, it has a very attractive valuation with a 0.54 Enterprise value to Capital Employed

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 -0.80%, its profits have risen by 265.4% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wood One Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Wood One Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wood One Co., Ltd.

-0.8%

0.23

30.38%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.50%

EBIT Growth (5y)

-7.55%

EBIT to Interest (avg)

3.31

Debt to EBITDA (avg)

7.36

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

0.76

Tax Ratio

30.46%

Dividend Payout Ratio

12.57%

Pledged Shares

Institutional Holding

ROCE (avg)

1.88%

ROE (avg)

2.33%

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

0.18

EV to EBIT

32.47

EV to EBITDA

8.69

EV to Capital Employed

0.54

EV to Sales

0.65

PEG Ratio

0.02

Dividend Yield

0.06%

ROCE (Latest)

1.66%

ROE (Latest)

4.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

8What is working for the Company

NET PROFIT(9M)

At JPY 987.3 MM has Grown at 64.06%

ROCE(HY)

Highest at 5.17%

RAW MATERIAL COST(Y)

Fallen by -2.74% (YoY

NET SALES(Q)

Highest at JPY 17,955 MM

OPERATING PROFIT(Q)

Highest at JPY 1,723 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.6 %

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.19 times

Here's what is working for Wood One Co., Ltd.

Net Profit

At JPY 987.3 MM has Grown at 64.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 17,955 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,723 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -2.74% (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 955 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 Wood One Co., Ltd.

Debtors Turnover Ratio

Lowest at 7.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio