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

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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)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -0.41% and Operating profit at 3.86% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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 -0.41% and Operating profit at 3.86% over the last 5 years

Flat results in Dec 25

NET PROFIT(HY) At JPY 709.28 MM has Grown at -77.42%
INTEREST(HY) At JPY 473 MM has Grown at 31.02%

With ROCE of 2.62%, it has a very attractive valuation with a 0.85 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 73.18%, its profits have risen by 76.1% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Yokorei Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Yokorei Co., Ltd.

73.18%

1.70

29.57%

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)

-0.41%

EBIT Growth (5y)

3.86%

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

0.65

EV to EBIT

32.54

EV to EBITDA

12.58

EV to Capital Employed

0.85

EV to Sales

1.29

PEG Ratio

0.14

Dividend Yield

0.06%

ROCE (Latest)

2.62%

ROE (Latest)

5.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

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

11What is working for the Company

NET PROFIT(Q)

At JPY 1,322.93 MM has Grown at 227.28%

OPERATING CASH FLOW(Y)

Highest at JPY 19,537 MM

RAW MATERIAL COST(Y)

Fallen by -14.17% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 123.21 %

OPERATING PROFIT(Q)

Highest at JPY 4,349 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.05 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,448 MM

-16What is not working for the Company

NET PROFIT(HY)

At JPY 709.28 MM has Grown at -77.42%

INTEREST(HY)

At JPY 473 MM has Grown at 31.02%

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

Net Profit

At JPY 1,322.93 MM has Grown at 227.28%

over average net sales of the previous four periods of JPY 404.22 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 19,537 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

Highest at JPY 4,349 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.05 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,448 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 2,448 MM has Grown at 87.19%

over average net sales of the previous four periods of JPY 1,307.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Lowest at 123.21 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -14.17% (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 473 MM has Grown at 31.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)