Why is ZUU Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 7.76%
- The company has been able to generate a Return on Equity (avg) of 7.76% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 7.63
- Poor long term growth as Operating profit has grown by an annual rate 10.03% of over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 7.63
- The company has been able to generate a Return on Equity (avg) of 7.76% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Operating profit has grown by an annual rate 10.03% of over the last 5 years
4
With a fall in Net Sales of -17.2%, the company declared Very Negative results in Mar 26
- The company has declared negative results for the last 4 consecutive quarters
- NET SALES(Q) At JPY 690.3 MM has Fallen at -17.2%
- PRE-TAX PROFIT(Q) At JPY 40.23 MM has Fallen at -95.26%
- NET PROFIT(Q) At JPY 34.03 MM has Fallen at -90.74%
5
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -32.06%, its profits have risen by 151.5% ; the PEG ratio of the company is 0
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is ZUU Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
ZUU Co., Ltd.
-100.0%
-1.61
33.20%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality key factors
Factor
Value
Sales Growth (5y)
1.48%
EBIT Growth (5y)
10.03%
EBIT to Interest (avg)
-1.76
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-1.69
Sales to Capital Employed (avg)
1.74
Tax Ratio
81.83%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
7.76%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
1.72
EV to EBIT
-21.92
EV to EBITDA
-76.61
EV to Capital Employed
2.85
EV to Sales
0.52
PEG Ratio
0.04
Dividend Yield
NA
ROCE (Latest)
-13.00%
ROE (Latest)
26.28%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
Bearish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
3What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 2,002.64 times
RAW MATERIAL COST(Y)
Fallen by -15.97% (YoY
-37What is not working for the Company
NET SALES(Q)
At JPY 690.3 MM has Fallen at -17.2%
PRE-TAX PROFIT(Q)
At JPY 40.23 MM has Fallen at -95.26%
NET PROFIT(Q)
At JPY 34.03 MM has Fallen at -90.74%
ROCE(HY)
Lowest at -32.09%
DEBT-EQUITY RATIO
(HY)
Highest at -83.07 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.81 times
INTEREST(Q)
Highest at JPY 5.38 MM
Here's what is working for ZUU Co., Ltd.
Inventory Turnover Ratio
Highest at 2,002.64 times and Grown
In each half year 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 -15.97% (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 195.95 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 195.95 MM has Grown at 1,595.51%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for ZUU Co., Ltd.
Net Sales
At JPY 690.3 MM has Fallen at -17.2%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 40.23 MM has Fallen at -95.26%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 34.03 MM has Fallen at -90.74%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 5.38 MM has Grown at 201.8%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 5.38 MM
in the last five periods and Increased by 201.8% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -83.07 %
in the last five Semi-Annual periodsMOJO 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 0.81 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






