Aichi Tokei Denki Co., Ltd. (7723) 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

Nihon Dengi Co., Ltd.

Nippon Ceramic Co., Ltd.

OPTEX GROUP Co., Ltd.

Osaka Organic Chemical Industry Ltd.

Nagano Keiki Co., Ltd.

A&D Holon Holdings Co., Ltd.

Espec Corp.

Aichi Tokei Denki Co., Ltd.

Kyosan Electric Manufacturing Co., Ltd.

Oki Electric Industry Co., Ltd.

Abalance Corp.

Why is Aichi Tokei Denki Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 2.44% and Operating profit at 5.71% over the last 5 years

Negative results in Jun 25

INTEREST(9M) At JPY 5 MM has Grown at 25%
DEBT-EQUITY RATIO (HY) Highest at -18.36 %
CASH AND EQV(HY) Lowest at JPY 19,695 MM

With ROE of 7.62%, it has a very attractive valuation with a 0.73 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 26.68%, its profits have risen by 11.1% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Aichi Tokei Denki Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Aichi Tokei Denki Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aichi Tokei Denki Co., Ltd.

26.68%

0.63

28.99%

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)

2.44%

EBIT Growth (5y)

5.71%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.19

Tax Ratio

25.82%

Dividend Payout Ratio

32.63%

Pledged Shares

Institutional Holding

ROCE (avg)

11.92%

ROE (avg)

8.10%

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

0.73

EV to EBIT

6.29

EV to EBITDA

4.97

EV to Capital Employed

0.66

EV to Sales

0.46

PEG Ratio

0.87

Dividend Yield

0.02%

ROCE (Latest)

10.56%

ROE (Latest)

7.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

NET PROFIT(HY)

At JPY 2,303 MM has Grown at 103.81%

RAW MATERIAL COST(Y)

Fallen by -11.22% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.51%

-8What is not working for the Company

INTEREST(9M)

At JPY 5 MM has Grown at 25%

DEBT-EQUITY RATIO (HY)

Highest at -18.36 %

CASH AND EQV(HY)

Lowest at JPY 19,695 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.07%

Here's what is working for Aichi Tokei Denki Co., Ltd.

Net Profit

At JPY 2,303 MM has Grown at 103.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 4.51%

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 -11.22% (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 Tokei Denki Co., Ltd.

Interest

At JPY 5 MM has Grown at 25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -18.36 % and Grown

In each half year 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

Cash and Eqv

Lowest at JPY 19,695 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.07%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio