Why is Yorozu Corp. ?
1
Poor Management Efficiency with a low ROCE of 2.87%
- The company has been able to generate a Return on Capital Employed (avg) of 2.87% signifying low profitability per unit of total capital (equity and debt)
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 2.75
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 2.75
- The company has been able to generate a Return on Equity (avg) of 1.62% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 7.46% and Operating profit at 25.46% over the last 5 years
4
The company has declared Positive results for the last 3 consecutive quarters
- NET PROFIT(Q) At JPY 856.02 MM has Grown at 438.13%
- ROCE(HY) Highest at 5.34%
- PRE-TAX PROFIT(Q) At JPY 1,034 MM has Grown at 149.76%
5
With ROCE of 2.70%, it has a very attractive valuation with a 0.55 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 -7.76%, its profits have fallen by -400.8%
- At the current price, the company has a high dividend yield of 0
How much should you hold?
- Overall Portfolio exposure to Yorozu Corp. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Yorozu Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Yorozu Corp.
-100.0%
-0.66
28.34%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality key factors
Factor
Value
Sales Growth (5y)
7.46%
EBIT Growth (5y)
25.46%
EBIT to Interest (avg)
3.44
Debt to EBITDA (avg)
0.85
Net Debt to Equity (avg)
0.21
Sales to Capital Employed (avg)
1.89
Tax Ratio
32.19%
Dividend Payout Ratio
36.36%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
4.00%
ROE (avg)
1.62%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.43
EV to EBIT
20.57
EV to EBITDA
4.44
EV to Capital Employed
0.55
EV to Sales
0.21
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.70%
ROE (Latest)
-2.98%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Movement
20What is working for the Company
NET PROFIT(Q)
At JPY 856.02 MM has Grown at 438.13%
ROCE(HY)
Highest at 5.34%
PRE-TAX PROFIT(Q)
At JPY 1,034 MM has Grown at 149.76%
RAW MATERIAL COST(Y)
Fallen by -21.62% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 9.26 times
-5What is not working for the Company
INTEREST(Q)
Highest at JPY 270 MM
Here's what is working for Yorozu Corp.
Net Profit
At JPY 856.02 MM has Grown at 438.13%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Pre-Tax Profit
At JPY 1,034 MM has Grown at 149.76%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Inventory Turnover Ratio
Highest at 9.26 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -21.62% (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 1,606 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Yorozu Corp.
Interest
Highest at JPY 270 MM
in the last five periods and Increased by 8.87% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
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