Yellow Hat Ltd. (9882) 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

Inaba Denkisangyo Co., Ltd.

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Yamazen Corp.

Sangetsu Corp.

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Mitani Corp.

ARE Holdings, Inc.

Taikisha Ltd.

Yellow Hat Ltd.

Autobacs Seven Co., Ltd.

Trusco Nakayama Corp.

Why is Yellow Hat Ltd. ?

High Management Efficiency with a high ROE of 10.03%

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

Poor long term growth as Net Sales has grown by an annual rate of 1.78% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

INVENTORY TURNOVER RATIO(HY) Lowest at 3.02 times
DEBT-EQUITY RATIO (HY) Highest at 13.66 %
INTEREST(Q) Highest at JPY 73 MM

With ROE of 9.66%, it has a very attractive valuation with a 1.21 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 13.04%, its profits have risen by 6.8%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 13.04% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yellow Hat 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 Yellow Hat Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Yellow Hat Ltd.

-100.0%

0.79

56.92%

Japan Nikkei 225

38.94%

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)

1.78%

EBIT Growth (5y)

8.75%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

1.17

Tax Ratio

31.51%

Dividend Payout Ratio

40.47%

Pledged Shares

Institutional Holding

ROCE (avg)

14.76%

ROE (avg)

10.03%

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

1.21

EV to EBIT

9.69

EV to EBITDA

8.07

EV to Capital Employed

1.20

EV to Sales

0.97

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

12.42%

ROE (Latest)

9.66%

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

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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 0.19% (YoY

CASH AND EQV(HY)

Highest at JPY 58,481 MM

NET SALES(Q)

Highest at JPY 53,048 MM

PRE-TAX PROFIT(Q)

Highest at JPY 8,825 MM

NET PROFIT(Q)

Highest at JPY 6,093.75 MM

EPS(Q)

Highest at JPY 70.51

-14What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.02 times

DEBT-EQUITY RATIO (HY)

Highest at 13.66 %

INTEREST(Q)

Highest at JPY 73 MM

Here's what is working for Yellow Hat Ltd.

Net Sales

Highest at JPY 53,048 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 8,825 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 6,093.75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 70.51

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 58,481 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.19% (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 953 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 Yellow Hat Ltd.

Interest

At JPY 73 MM has Grown at 92.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.02 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 73 MM

in the last five periods and Increased by 92.11% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 13.66 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at JPY 0.19 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income