Airtech Japan, Ltd. (6291) 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

Hirata Corp.

Foster Electric Company, Limited

Doshisha Co., Ltd.

Tamron Co., Ltd.

Zojirushi Corp.

Casio Computer Co., Ltd.

Yokowo Co. Ltd.

Airtech Japan, Ltd.

JANOME Corp.

Ushio, Inc.

YA-MAN Ltd.

Why is Airtech Japan, Ltd. ?

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

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 31,480.19
CASH AND EQV(HY) Lowest at JPY 5,927.77 MM
INTEREST(Q) Highest at JPY 1.35 MM

With ROE of 7.94%, 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 -0.49%, its profits have risen by 57.4% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.49% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Airtech Japan, 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 Airtech Japan, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Airtech Japan, Ltd.

-0.49%

0.10

21.17%

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)

6.32%

EBIT Growth (5y)

18.75%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.93

Tax Ratio

25.96%

Dividend Payout Ratio

45.56%

Pledged Shares

Institutional Holding

ROCE (avg)

16.40%

ROE (avg)

8.66%

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

8.27

EV to EBITDA

6.87

EV to Capital Employed

0.75

EV to Sales

0.66

PEG Ratio

0.17

Dividend Yield

0.10%

ROCE (Latest)

9.04%

ROE (Latest)

7.94%

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

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

8What is working for the Company

ROCE(HY)

Highest at 8.19%

RAW MATERIAL COST(Y)

Fallen by -2.2% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 11.54 %

PRE-TAX PROFIT(Q)

Highest at JPY 770.11 MM

NET PROFIT(Q)

Highest at JPY 549.82 MM

EPS(Q)

Highest at JPY 54.14

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 31,480.19

CASH AND EQV(HY)

Lowest at JPY 5,927.77 MM

INTEREST(Q)

Highest at JPY 1.35 MM

Here's what is working for Airtech Japan, Ltd.

Operating Profit Margin

Highest at 11.54 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 770.11 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 549.82 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 54.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -2.2% (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 65.06 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 Airtech Japan, Ltd.

Interest Coverage Ratio

Lowest at 31,480.19 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 1.35 MM has Grown at 35.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 1.35 MM

in the last five periods and Increased by 35.75% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 5,927.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents