Zenkoku Hosho Co., Ltd. (7164) 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

Dream Incubator, Inc.

Tokio Marine Holdings, Inc.

Zenkoku Hosho Co., Ltd.

Anicom Holdings, Inc.

Why is Zenkoku Hosho Co., Ltd. ?

Weak Long Term Fundamental Strength with a 1.19% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 1.19% of over the last 5 years

Flat results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 3,445.45
CASH AND EQV(HY) Lowest at JPY 225,129 MM
DEBT-EQUITY RATIO (HY) Highest at -32.27 %

With ROE of 13.27%, it has a very attractive valuation with a 1.61 Price to Book Value

Over the past year, while the stock has generated a return of -5.38%, its profits have risen by 1% ; the PEG ratio of the company is 8.9

Below par performance in long term as well as near term

Along with generating -5.38% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zenkoku Hosho Co., Ltd. should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

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

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

Is Zenkoku Hosho Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zenkoku Hosho Co., Ltd.

-100.0%

0.52

17.22%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.70%

EBIT Growth (5y)

1.19%

EBIT to Interest (avg)

50.42

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

30.17%

Dividend Payout Ratio

49.24%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

54.11%

ROE (avg)

14.26%

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

1.61

EV to EBIT

7.42

EV to EBITDA

7.24

EV to Capital Employed

1.94

EV to Sales

5.23

PEG Ratio

8.89

Dividend Yield

ROCE (Latest)

26.12%

ROE (Latest)

13.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.6% (YoY

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,445.45

CASH AND EQV(HY)

Lowest at JPY 225,129 MM

DEBT-EQUITY RATIO (HY)

Highest at -32.27 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.06 times

INTEREST(Q)

Highest at JPY 231 MM

Here's what is working for Zenkoku Hosho Co., Ltd.

Raw Material Cost

Fallen by -0.6% (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 Zenkoku Hosho Co., Ltd.

Interest

At JPY 231 MM has Grown at 19.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,445.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 231 MM

in the last five periods and Increased by 19.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 225,129 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -32.27 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 6.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income