Yamazaki Baking Co., Ltd. (2212) 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

Kikkoman Corp.

Toyo Suisan Kaisha, Ltd.

Ajinomoto Co., Inc.

Kagome Co., Ltd.

Yamazaki Baking Co., Ltd.

CALBEE, Inc.

Fuji Oil Holdings, Inc.

Nissin Foods Holdings Co., Ltd.

Morinaga & Co., Ltd.

House Foods Group, Inc.

Meiji Holdings Co., Ltd.

Why is Yamazaki Baking Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.06%

The company has been able to generate a Return on Equity (avg) of 6.06% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 28.57% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.06% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.63% and Operating profit at 28.57% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 865 MM has Grown at 25%
INVENTORY TURNOVER RATIO(HY) Lowest at 23.97 times

With ROE of 9.84%, it has a attractive valuation with a 1.47 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 5.04%, its profits have risen by 17.7% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yamazaki Baking Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Yamazaki Baking Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yamazaki Baking Co., Ltd.

0.88%

-0.02

27.65%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.63%

EBIT Growth (5y)

28.57%

EBIT to Interest (avg)

42.83

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

2.48

Tax Ratio

30.29%

Dividend Payout Ratio

29.02%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

11.98%

ROE (avg)

6.06%

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

1.47

EV to EBIT

9.69

EV to EBITDA

5.59

EV to Capital Employed

1.56

EV to Sales

0.46

PEG Ratio

0.85

Dividend Yield

0.02%

ROCE (Latest)

16.11%

ROE (Latest)

9.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.06% (YoY

CASH AND EQV(HY)

Highest at JPY 342,888 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 11.6 times

PRE-TAX PROFIT(Q)

Highest at JPY 18,617 MM

NET PROFIT(Q)

Highest at JPY 12,470.7 MM

EPS(Q)

Highest at JPY 62.29

-9What is not working for the Company

INTEREST(HY)

At JPY 865 MM has Grown at 25%

INVENTORY TURNOVER RATIO(HY)

Lowest at 23.97 times

Here's what is working for Yamazaki Baking Co., Ltd.

Pre-Tax Profit

Highest at JPY 18,617 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 12,470.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 62.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 342,888 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 11.6 times

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 -0.06% (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

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

Interest

At JPY 865 MM has Grown at 25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 23.97 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio