ScoreWhy is Aichi Steel Corp. ?
1
Poor Management Efficiency with a low ROCE of 3.00%
- The company has been able to generate a Return on Capital Employed (avg) of 3.00% signifying low profitability per unit of total capital (equity and debt)
2
Weak Long Term Fundamental Strength with a 33.35% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 2.54% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Operating profit has grown by an annual rate 33.35% of over the last 5 years
4
With ROCE of 7.76%, it has a fair valuation with a 0.89 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 30.69%, its profits have risen by 81%
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 30.69% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
Real-Time Research ReportHow 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 Ferrous Metals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Aichi Steel Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Aichi Steel Corp.
28.31%
-0.37
37.02%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.62%
EBIT Growth (5y)
33.35%
EBIT to Interest (avg)
15.43
Debt to EBITDA (avg)
1.12
Net Debt to Equity (avg)
0.13
Sales to Capital Employed (avg)
0.98
Tax Ratio
30.28%
Dividend Payout Ratio
40.44%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
4.02%
ROE (avg)
2.54%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
0.88
EV to EBIT
11.50
EV to EBITDA
5.97
EV to Capital Employed
0.89
EV to Sales
0.75
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.76%
ROE (Latest)
5.98%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
ROCE(HY)
Highest at 4.88%
DEBT-EQUITY RATIO
(HY)
Lowest at 12.24 %
DEBTORS TURNOVER RATIO(HY)
Highest at 4.98 times
NET SALES(Q)
Highest at JPY 81,603 MM
-2What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 13.02% (YoY
CASH AND EQV(HY)
Lowest at JPY 72,045 MM
Here's what is working for Aichi Steel Corp.
Net Sales
Highest at JPY 81,603 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Debt-Equity Ratio
Lowest at 12.24 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 4.98 times
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 Steel Corp.
Cash and Eqv
Lowest at JPY 72,045 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 13.02% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at JPY 0.12 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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