Workman Co., Ltd. (7564) 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

Hanwa Co., Ltd.

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Inabata & Co., Ltd.

Sumitomo Corp.

Daiichikosho Co., Ltd.

Workman Co., Ltd.

Nagase & Co., Ltd.

Iwatani Corp.

Mitsubishi Corp.

Why is Workman Co., Ltd. ?

High Management Efficiency with a high ROE of 15.27%

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

With a growth in Net Sales of 24.62%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 14.28%
CASH AND EQV(HY) Highest at JPY 177,979 MM
INVENTORY TURNOVER RATIO(HY) Highest at 3.7 times

With ROE of 13.43%, it has a fair valuation with a 3.81 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 14.04%, its profits have risen by 25.1% ; the PEG ratio of the company is 1.1

Underperformed the market in the last 1 year

The stock has generated a return of 14.04% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Workman 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 Workman Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Workman Co., Ltd.

14.04%

2.29

36.86%

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)

8.15%

EBIT Growth (5y)

4.69%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

1.05

Tax Ratio

32.13%

Dividend Payout Ratio

35.27%

Pledged Shares

Institutional Holding

ROCE (avg)

52.76%

ROE (avg)

15.27%

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

3.81

EV to EBIT

16.31

EV to EBITDA

14.71

EV to Capital Employed

8.52

EV to Sales

3.07

PEG Ratio

1.13

Dividend Yield

ROCE (Latest)

52.24%

ROE (Latest)

13.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

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 14.28%

CASH AND EQV(HY)

Highest at JPY 177,979 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.7 times

DIVIDEND PER SHARE(HY)

Highest at JPY 9.19

NET SALES(Q)

At JPY 36,550 MM has Grown at 24.62%

-4What is not working for the Company

INTEREST(Q)

At JPY 9 MM has Grown at 12.5%

OPERATING PROFIT MARGIN(Q)

Lowest at 13.84 %

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

Net Sales

At JPY 36,550 MM has Grown at 24.62%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 177,979 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.7 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 9.19

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

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

Interest

At JPY 9 MM has Grown at 12.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 13.84 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at JPY 0.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income