Aichi Steel Corp. (5482) 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

Aichi Steel Corp.

Okaya & Co., Ltd.

Yodogawa Steel Works, Ltd.

Daido Steel Co., Ltd.

Kyoei Steel Ltd.

Sojitz Corp.

Yamato Kogyo Co., Ltd.

Godo Steel, Ltd.

Tokyo Steel Manufacturing Co., Ltd.

OSAKA STEEL CO., LTD.

Sanyo Special Steel Co., Ltd.

Why is Aichi Steel Corp. ?

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%

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 124.85%, 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

Consistent Returns over the last 3 years

Along with generating 124.85% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

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.

124.85%

-0.27

89.20%

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)

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

Institutional Holding

0.06%

ROCE (avg)

3.00%

ROE (avg)

2.49%

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

0.67

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

20What 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 years

MOJO 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 periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at JPY 50.82

in the last five periods

MOJO 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 periods

MOJO 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 period

MOJO 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 periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 22.65 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio