World Co., Ltd. (3612) 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

Ryohin Keikaku Co., Ltd.

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Mizuno Corp.

Onward Holdings Co., Ltd.

GOLDWIN INC.

World Co., Ltd.

TSI Holdings Co., Ltd.

Gunze Ltd.

Wacoal Holdings Corp.

Descente Ltd.

Why is World Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.76% and Operating profit at 34.65% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.35% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.76% and Operating profit at 34.65% over the last 5 years

Flat results in May 26

INTEREST(Q) Highest at JPY 580 MM

With ROCE of 9.49%, it has a attractive valuation with a 1.10 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 -43.94%, its profits have fallen by -11.8%

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -43.94% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to World Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is World Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

World Co., Ltd.

-43.94%

-0.38

56.80%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.76%

EBIT Growth (5y)

34.65%

EBIT to Interest (avg)

11.49

Debt to EBITDA (avg)

2.42

Net Debt to Equity (avg)

1.01

Sales to Capital Employed (avg)

1.37

Tax Ratio

8.60%

Dividend Payout Ratio

31.80%

Pledged Shares

Institutional Holding

ROCE (avg)

9.21%

ROE (avg)

8.35%

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

1.18

EV to EBIT

11.59

EV to EBITDA

5.38

EV to Capital Employed

1.10

EV to Sales

0.67

PEG Ratio

Dividend Yield

ROCE (Latest)

9.49%

ROE (Latest)

12.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

13What is working for the Company

NET SALES(HY)

At JPY 150,783 MM has Grown at 17.22%

ROCE(HY)

Highest at 14.34%

RAW MATERIAL COST(Y)

Fallen by -2.2% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.2 times

OPERATING PROFIT(Q)

Highest at JPY 12,261 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.41 %

PRE-TAX PROFIT(Q)

Highest at JPY 6,718 MM

NET PROFIT(Q)

Highest at JPY 5,452 MM

EPS(Q)

Highest at JPY 71.57

-8What is not working for the Company

INTEREST(Q)

Highest at JPY 580 MM

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

Net Sales

At JPY 150,783 MM has Grown at 17.22%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 12,261 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 16.41 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 6,718 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 5,452 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 71.57

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 5.2 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 -2.2% (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 5,090 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 World Co., Ltd.

Interest

At JPY 580 MM has Grown at 17.17%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 580 MM

in the last five periods and Increased by 17.17% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)