Yorozu Corp. (7294) 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

Yachiyo Industry Co., Ltd.

Nishikawa Rubber Co., Ltd.

Taiho Kogyo Co., Ltd.

Murakami Corp.

Yorozu Corp.

Nihon Tokushu Toryo Co., Ltd.

IJTT Co., Ltd.

Yutaka Giken Co., Ltd.

Furukawa Battery Co., Ltd.

Mitsuba Corp.

Sanoh Industrial Co., Ltd.

Why is Yorozu Corp. ?

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)

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

Poor long term growth as Net Sales has grown by an annual rate of 2.50% and Operating profit at -32.95% over the last 5 years

With a growth in Operating Profit of 13.07%, the company declared Outstanding results in Dec 25

The company has declared positive results in Jan 70 after 4 consecutive negative quarters
PRE-TAX PROFIT(Q) At JPY 411 MM has Grown at 271.97%
INTEREST COVERAGE RATIO(Q) Highest at 978.18
RAW MATERIAL COST(Y) Fallen by -22.49% (YoY)

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -11.47%, its profits have fallen by -257.4%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

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.

-11.47%

-0.49

31.70%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.50%

EBIT Growth (5y)

-32.95%

EBIT to Interest (avg)

2.75

Debt to EBITDA (avg)

0.93

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.85

Tax Ratio

26.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

2.87%

ROE (avg)

1.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.43

EV to EBIT

112.79

EV to EBITDA

4.24

EV to Capital Employed

0.53

EV to Sales

0.19

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

0.47%

ROE (Latest)

-10.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

17What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 411 MM has Grown at 271.97%

INTEREST COVERAGE RATIO(Q)

Highest at 978.18

RAW MATERIAL COST(Y)

Fallen by -22.49% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 9.24 times

OPERATING PROFIT(Q)

Highest at JPY 2,152 MM

NET PROFIT(Q)

At JPY 150.29 MM has Grown at 119.39%

EPS(Q)

Highest at JPY 13.16

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 41,582 MM

Here's what is working for Yorozu Corp.

Pre-Tax Profit

At JPY 411 MM has Grown at 271.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Interest Coverage Ratio

Highest at 978.18

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 2,152 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Net Profit

At JPY 150.29 MM has Grown at 119.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 13.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 9.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -22.49% (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 Yorozu Corp.

Cash and Eqv

Lowest at JPY 41,582 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents