Airport Facilities Co., Ltd. (8864) 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

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Why is Airport Facilities Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.54%

Poor long term growth as Operating profit has grown by an annual rate of 1.78%
The company has been able to generate a Return on Equity (avg) of 4.54% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate of 1.78%

INTEREST(HY) At JPY 173 MM has Grown at 17.68%
INTEREST COVERAGE RATIO(Q) Lowest at 2,906.02
RAW MATERIAL COST(Y) Grown by 5.33% (YoY)

With ROE of 4.39%, it has a very attractive valuation with a 0.78 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 -10.80%, its profits have risen by 23% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -10.80% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Airport Facilities Co., Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Airport Facilities Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Airport Facilities Co., Ltd.

-10.8%

2.16

25.14%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.60%

EBIT Growth (5y)

1.78%

EBIT to Interest (avg)

14.63

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

33.08%

Dividend Payout Ratio

60.34%

Pledged Shares

Institutional Holding

ROCE (avg)

9.24%

ROE (avg)

4.54%

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

0.78

EV to EBIT

8.49

EV to EBITDA

4.12

EV to Capital Employed

0.75

EV to Sales

1.22

PEG Ratio

0.77

Dividend Yield

ROCE (Latest)

8.78%

ROE (Latest)

4.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 25.91 %

-16What is not working for the Company

INTEREST(HY)

At JPY 173 MM has Grown at 17.68%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,906.02

RAW MATERIAL COST(Y)

Grown by 5.33% (YoY

NET SALES(Q)

Lowest at JPY 7,006 MM

PRE-TAX PROFIT(Q)

Fallen at -42.95%

NET PROFIT(Q)

Lowest at JPY 879.04 MM

Here's what is working for Airport Facilities Co., Ltd.

Debt-Equity Ratio

Lowest at 25.91 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Airport Facilities Co., Ltd.

Net Sales

At JPY 7,006 MM has Fallen at -25.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 173 MM has Grown at 17.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,906.02

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 7,006 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Fallen at -42.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 879.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -42.88%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 5.33% (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