ScoreWhy is Aichi Steel Corp. ?
1
Poor Management Efficiency with a low ROCE of 2.85%
- The company has been able to generate a Return on Capital Employed (avg) of 2.85% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Operating profit has grown by an annual rate -1.60% of over the last 5 years
3
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at JPY 43,209 MM
- ROCE(HY) Highest at 4.42%
- PRE-TAX PROFIT(Q) At JPY 4,610 MM has Grown at 145.87%
4
With ROCE of 4.93%, it has a very attractive valuation with a 0.70 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 94.70%, its profits have risen by 17.3% ; the PEG ratio of the company is 1
- At the current price, the company has a high dividend yield of 0
5
Market Beating Performance
- The stock has generated a return of 94.70% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 38.59%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Aichi Steel Corp. should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aichi Steel Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Aichi Steel Corp.
-100.0%
-0.12
88.43%
Japan Nikkei 225
38.59%
1.45
26.59%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.32%
EBIT Growth (5y)
-1.60%
EBIT to Interest (avg)
14.87
Debt to EBITDA (avg)
1.23
Net Debt to Equity (avg)
0.12
Sales to Capital Employed (avg)
0.97
Tax Ratio
21.66%
Dividend Payout Ratio
40.20%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
3.00%
ROE (avg)
2.49%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
0.67
EV to EBIT
14.29
EV to EBITDA
5.74
EV to Capital Employed
0.70
EV to Sales
0.61
PEG Ratio
0.96
Dividend Yield
0.01%
ROCE (Latest)
4.93%
ROE (Latest)
4.02%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend20What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 43,209 MM
ROCE(HY)
Highest at 4.42%
PRE-TAX PROFIT(Q)
At JPY 4,610 MM has Grown at 145.87%
NET PROFIT(Q)
At JPY 3,568 MM has Grown at 218%
RAW MATERIAL COST(Y)
Fallen by -44.04% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 4.83%
OPERATING PROFIT MARGIN(Q)
Highest at 12.52 %
EPS(Q)
Highest at JPY 50.82
-6What is not working for the Company
INTEREST(HY)
At JPY 667 MM has Grown at 55.84%
CASH AND EQV(HY)
Lowest at JPY 73,455 MM
DEBT-EQUITY RATIO
(HY)
Highest at 22.65 %
Here's what is working for Aichi Steel Corp.
Pre-Tax Profit
At JPY 4,610 MM has Grown at 145.87%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 3,568 MM has Grown at 218%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Operating Cash Flow
Highest at JPY 43,209 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Operating Profit Margin
Highest at 12.52 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
EPS
Highest at JPY 50.82
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Highest at 4.83%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -44.04% (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 Aichi Steel Corp.
Interest
At JPY 667 MM has Grown at 55.84%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 73,455 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 22.65 %
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
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