Zaoh Co., Ltd. (9986) 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

Mitani Sangyo Co., Ltd.

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Zaoh Co., Ltd.

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Rasa Corp.

HASHIMOTO SOGYO HOLDINGS Co., Ltd.

Nice Corp. (Japan)

Why is Zaoh Co., Ltd. ?

Weak Long Term Fundamental Strength with a 0.24% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 0.24% of over the last 5 years

Flat results in Jun 26

NET SALES(Q) Lowest at JPY 1,966.47 MM
OPERATING PROFIT(Q) Lowest at JPY 199.71 MM
OPERATING PROFIT MARGIN(Q) Lowest at 10.16 %

With ROE of 5.48%, 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 2.34%, its profits have fallen by -15.6%

Underperformed the market in the last 1 year

The stock has generated a return of 2.34% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 58.07%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zaoh Co., 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 Zaoh Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zaoh Co., Ltd.

2.97%

-0.38

8.61%

Japan Nikkei 225

58.07%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.20%

EBIT Growth (5y)

0.24%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.70

Tax Ratio

31.05%

Dividend Payout Ratio

79.39%

Pledged Shares

Institutional Holding

ROCE (avg)

19.92%

ROE (avg)

7.29%

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

8.75

EV to EBITDA

7.69

EV to Capital Employed

1.42

EV to Sales

1.05

PEG Ratio

Dividend Yield

ROCE (Latest)

16.22%

ROE (Latest)

5.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.96% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.47 times

-6What is not working for the Company

NET SALES(Q)

Lowest at JPY 1,966.47 MM

OPERATING PROFIT(Q)

Lowest at JPY 199.71 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.16 %

NET PROFIT(Q)

At JPY 125.36 MM has Fallen at -30.25%

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

Debtors Turnover Ratio

Highest at 4.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.96% (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 Zaoh Co., Ltd.

Net Sales

At JPY 1,966.47 MM has Fallen at -10.18%

over average net sales of the previous four periods of JPY 2,189.38 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 1,966.47 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 199.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 10.16 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At JPY 125.36 MM has Fallen at -30.25%

over average net sales of the previous four periods of JPY 179.73 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Non Operating Income

Highest at JPY 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income