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
With a growth in Operating Profit of 9.95%, the company declared Very Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at JPY 70,974 MM
- ROCE(HY) Highest at 4.87%
- RAW MATERIAL COST(Y) Fallen by -12.57% (YoY)
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 51.42%, 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 51.42% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%
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.
52.19%
-0.22
87.27%
Japan Nikkei 225
36.73%
1.30
28.24%
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
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 70,974 MM
ROCE(HY)
Highest at 4.87%
RAW MATERIAL COST(Y)
Fallen by -12.57% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 12.72 %
OPERATING PROFIT(Q)
Highest at JPY 10,245 MM
OPERATING PROFIT MARGIN(Q)
Highest at 13.32 %
PRE-TAX PROFIT(Q)
Highest at JPY 6,019 MM
NET PROFIT(Q)
Highest at JPY 4,052 MM
EPS(Q)
Highest at JPY 62.24
-2What is not working for the Company
INTEREST(Q)
At JPY 263 MM has Grown at 152.88%
Here's what is working for Aichi Steel Corp.
Operating Cash Flow
Highest at JPY 70,974 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Operating Profit
Highest at JPY 10,245 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 13.32 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 6,019 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 4,052 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 62.24
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Lowest at 12.72 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -12.57% (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 263 MM has Grown at 152.88%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
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