ScoreWhy is Aichi Corp. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 0.33% and Operating profit at 4.09% over the last 5 years
3
Flat results in Jun 25
- INVENTORY TURNOVER RATIO(HY) Lowest at 5.1%
- DEBT-EQUITY RATIO (HY) Highest at -44.9 %
- NET SALES(Q) Lowest at JPY 9,210.48 MM
4
With ROE of 7.62%, it has a very attractive valuation with a 1.23 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 -7.45%, its profits have risen by 21.6% ; the PEG ratio of the company is 0.8
- At the current price, the company has a high dividend yield of 0.1
5
Below par performance in long term as well as near term
- Along with generating -7.45% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Aichi Corp. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aichi Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Aichi Corp.
-7.33%
0.39
22.17%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.33%
EBIT Growth (5y)
4.09%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.56
Sales to Capital Employed (avg)
0.72
Tax Ratio
29.46%
Dividend Payout Ratio
64.74%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
18.46%
ROE (avg)
7.29%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.23
EV to EBIT
7.86
EV to EBITDA
6.54
EV to Capital Employed
1.51
EV to Sales
0.95
PEG Ratio
0.75
Dividend Yield
0.07%
ROCE (Latest)
19.24%
ROE (Latest)
7.62%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 5,447.54 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 4.47%
-16What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.1%
DEBT-EQUITY RATIO
(HY)
Highest at -44.9 %
NET SALES(Q)
Lowest at JPY 9,210.48 MM
OPERATING PROFIT(Q)
Lowest at JPY 584.79 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 6.35 %
PRE-TAX PROFIT(Q)
Lowest at JPY 536.8 MM
NET PROFIT(Q)
Lowest at JPY 385.45 MM
EPS(Q)
Lowest at JPY 4.44
Here's what is working for Aichi Corp.
Operating Cash Flow
Highest at JPY 5,447.54 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Debtors Turnover Ratio
Highest at 4.47%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Aichi Corp.
Net Sales
At JPY 9,210.48 MM has Fallen at -27.74%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 536.8 MM has Fallen at -54.64%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 385.45 MM has Fallen at -53.67%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Inventory Turnover Ratio
Lowest at 5.1% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Net Sales
Lowest at JPY 9,210.48 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Operating Profit
Lowest at JPY 584.79 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 6.35 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 536.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 385.45 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 4.44
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Highest at -44.9 %
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
Non Operating Income
Highest at JPY 0.56 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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