Yokorei Co., Ltd. (2874) 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

SIGMAXYZ Holdings, Inc.

Mitsubishi Research Institute, Inc.

insource Co., Ltd.

Nippon Parking Development Co., Ltd.

Prestige International Inc.

Weathernews, Inc.

TRYT, Inc.

Yokorei Co., Ltd.

Shin Nippon Biomedical Laboratories, Ltd.

GMO Financial Gate, Inc.

CUC, Inc.

Why is Yokorei Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.25%

The company has been able to generate a Return on Capital Employed (avg) of 2.25% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.30% and Operating profit at 5.88% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 2.25% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 2.30% and Operating profit at 5.88% over the last 5 years

With a growth in Net Profit of 35.65%, the company declared Very Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at JPY 19,315 MM
INTEREST COVERAGE RATIO(Q) Highest at 2,460.48
RAW MATERIAL COST(Y) Fallen by -13.49% (YoY)

With ROCE of 2.50%, it has a expensive valuation with a 1.04 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 126.12%, its profits have risen by 21.5% ; the PEG ratio of the company is 1.1
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 Yokorei Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Yokorei Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Yokorei Co., Ltd.

130.75%

2.21

40.94%

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)

2.30%

EBIT Growth (5y)

5.88%

EBIT to Interest (avg)

7.53

Debt to EBITDA (avg)

8.15

Net Debt to Equity (avg)

1.33

Sales to Capital Employed (avg)

0.68

Tax Ratio

33.79%

Dividend Payout Ratio

71.55%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

2.25%

ROE (avg)

4.55%

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

1.09

EV to EBIT

41.65

EV to EBITDA

14.59

EV to Capital Employed

1.04

EV to Sales

1.53

PEG Ratio

1.11

Dividend Yield

ROCE (Latest)

2.50%

ROE (Latest)

4.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 19,315 MM

INTEREST COVERAGE RATIO(Q)

Highest at 2,460.48

RAW MATERIAL COST(Y)

Fallen by -13.49% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 8.6

OPERATING PROFIT MARGIN(Q)

Highest at 13.3 %

NET PROFIT(Q)

Highest at JPY 1,702.08 MM

EPS(Q)

Highest at JPY 27.75

-6What is not working for the Company

NET PROFIT(9M)

At JPY 2,411.36 MM has Grown at -48.43%

INTEREST(9M)

At JPY 640 MM has Grown at 10.15%

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

Interest Coverage Ratio

Highest at 2,460.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At JPY 1,702.08 MM has Grown at 146.36%

over average net sales of the previous four periods of JPY 690.9 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 19,315 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Operating Profit Margin

Highest at 13.3 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at JPY 1,702.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 27.75

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Dividend per share

Highest at JPY 8.6

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -13.49% (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 Yokorei Co., Ltd.

Interest

At JPY 640 MM has Grown at 10.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)