A&A Material Corp. (5391) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Takihyo Co., Ltd.

Nexyz.Group Corp.

Weds Co., Ltd.

KITAKEI CO., LTD.

Konoshima Chemical Co., Ltd.

A&A Material Corp.

Harima-Kyowa Co., Ltd.

KUWAZAWA Holdings Corp.

Daimaru Enawin Co., Ltd.

Green Cross Co., Ltd.

Misumi Co., Ltd.

Why is A&A Material Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.31% and Operating profit at -9.64% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At JPY 49 MM has Grown at 104.17%
ROCE(HY) Lowest at 0.16%
INTEREST COVERAGE RATIO(Q) Lowest at 1,950

With ROCE of 8.56%, it has a risky valuation with a 0.55 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 1.37%, its profits have fallen by -30.5%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 1.37% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to A&A Material Corp. 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 A&A Material Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

A&A Material Corp.

1.37%

-0.45

19.87%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.31%

EBIT Growth (5y)

-9.64%

EBIT to Interest (avg)

26.26

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.71

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.39%

ROE (avg)

9.04%

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

0.47

EV to EBIT

6.48

EV to EBITDA

4.34

EV to Capital Employed

0.55

EV to Sales

0.29

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

8.56%

ROE (Latest)

10.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.58% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.73%

-22What is not working for the Company

INTEREST(HY)

At JPY 49 MM has Grown at 104.17%

ROCE(HY)

Lowest at 0.16%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,950

CASH AND EQV(HY)

Lowest at JPY 968 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.98%

PRE-TAX PROFIT(Q)

Lowest at JPY 70 MM

NET PROFIT(Q)

Lowest at JPY 65.8 MM

Here's what is working for A&A Material Corp.

Debtors Turnover Ratio

Highest at 3.73%

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 -6.58% (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 317 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 A&A Material Corp.

Interest

At JPY 49 MM has Grown at 104.17%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 70 MM has Fallen at -90.83%

over average net sales of the previous four periods of JPY 763.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 65.8 MM has Fallen at -86.5%

over average net sales of the previous four periods of JPY 487.35 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 1,950

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at JPY 70 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 65.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 968 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 7.98%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio