Zensho Holdings Co., Ltd. (7550) 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 Zensho Holdings Co., Ltd. ?

The company is Net-Debt Free

The company is Net-Debt Free

Healthy long term growth as Net Sales has grown by an annual rate of 15.42% and Operating profit at 61.92%

Flat results in Mar 26

INTEREST(HY) At JPY 3,726 MM has Grown at 24.03%
INVENTORY TURNOVER RATIO(HY) Lowest at 7.26 times
DEBTORS TURNOVER RATIO(HY) Lowest at 22.75 times

With ROCE of 15.62%, it has a very expensive valuation with a 3.39 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 -4.06%, its profits have fallen by -3.8%

Below par performance in long term as well as near term

Along with generating -4.06% 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 Zensho Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is Zensho Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zensho Holdings Co., Ltd.

-4.06%

0.75

37.59%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.42%

EBIT Growth (5y)

61.92%

EBIT to Interest (avg)

8.76

Debt to EBITDA (avg)

3.10

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

2.00

Tax Ratio

38.11%

Dividend Payout Ratio

29.11%

Pledged Shares

Institutional Holding

ROCE (avg)

9.07%

ROE (avg)

11.80%

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

4.67

EV to EBIT

21.71

EV to EBITDA

12.92

EV to Capital Employed

3.39

EV to Sales

1.38

PEG Ratio

Dividend Yield

ROCE (Latest)

15.62%

ROE (Latest)

13.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

9What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 22.75

NET SALES(Q)

Highest at JPY 327,362 MM

RAW MATERIAL COST(Y)

Fallen by -0.15% (YoY

CASH AND EQV(HY)

Highest at JPY 290,648 MM

DEBT-EQUITY RATIO (HY)

Lowest at 74.12 %

NET PROFIT(Q)

At JPY 13,187.31 MM has Grown at 82.85%

-12What is not working for the Company

INTEREST(HY)

At JPY 3,726 MM has Grown at 24.03%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.26 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 22.75 times

Here's what is working for Zensho Holdings Co., Ltd.

Net Sales

Highest at JPY 327,362 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 22.75 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

At JPY 13,187.31 MM has Grown at 82.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 290,648 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 74.12 %

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 -0.15% (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 15,294 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Zensho Holdings Co., Ltd.

Interest

At JPY 3,726 MM has Grown at 24.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 7.26 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 22.75 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio