Aida Engineering Ltd. (6118) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Obara Group, Inc.

Star Micronics Co., Ltd.

Valqua Ltd.

Union Tool Co.

Nikkiso Co., Ltd.

RS Technologies Co. Ltd.

Aida Engineering Ltd.

ASAHI YUKIZAI Corp.

Shibuya Corp.

DAIWA INDUSTRIES LTD.

Chofu Seisakusho Co., Ltd.

Why is Aida Engineering Ltd. ?

Poor Management Efficiency with a low ROE of 2.95%

The company has been able to generate a Return on Equity (avg) of 2.95% signifying low profitability per unit of shareholders funds

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 6.51% and Operating profit at 5.40% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 64 MM has Grown at 56.1%
NET PROFIT(Q) Fallen at -49.71%

With ROE of 6.13%, it has a fair valuation with a 0.86 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 26.89%, its profits have risen by 12.5% ; the PEG ratio of the company is 0.8

Underperformed the market in the last 1 year

The stock has generated a return of 26.89% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Aida Engineering Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Aida Engineering Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aida Engineering Ltd.

26.89%

1.07

30.49%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.51%

EBIT Growth (5y)

5.40%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

0.88

Tax Ratio

18.99%

Dividend Payout Ratio

41.83%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

6.84%

ROE (avg)

2.95%

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

0.86

EV to EBIT

7.55

EV to EBITDA

5.56

EV to Capital Employed

0.78

EV to Sales

0.53

PEG Ratio

0.77

Dividend Yield

ROCE (Latest)

10.31%

ROE (Latest)

6.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

6What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.16 times

RAW MATERIAL COST(Y)

Fallen by -19.27% (YoY

CASH AND EQV(HY)

Highest at JPY 74,645 MM

DEBT-EQUITY RATIO (HY)

Lowest at -39.55 %

DIVIDEND PER SHARE(HY)

Highest at JPY 4.16

-11What is not working for the Company

INTEREST(HY)

At JPY 64 MM has Grown at 56.1%

NET PROFIT(Q)

Fallen at -49.71%

Here's what is working for Aida Engineering Ltd.

Debtors Turnover Ratio

Highest at 4.16 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Cash and Eqv

Highest at JPY 74,645 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -39.55 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at JPY 4.16

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -19.27% (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

Depreciation

Highest at JPY 597 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Aida Engineering Ltd.

Interest

At JPY 64 MM has Grown at 56.1%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Fallen at -49.71%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)