Aisan Industry Co., Ltd. (7283) 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

NTN Corp.

F.C.C. Co., Ltd.

Topre Corp.

Mitsuboshi Belting Ltd.

Aisan Industry Co., Ltd.

EXEDY Corp.

KYB Corp.

TOKAI RIKA CO., LTD.

Pacific Industrial Co., Ltd.

Musashi Seimitsu Industry Co., Ltd.

PIOLAX, Inc.

Why is Aisan Industry Co., Ltd. ?

Poor Management Efficiency with a low ROE of 8.13%

The company has been able to generate a Return on Equity (avg) of 8.13% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 8.13%

Poor long term growth as Net Sales has grown by an annual rate of 12.77% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 8.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.77% over the last 5 years

Flat results in Jun 26

INVENTORY TURNOVER RATIO(HY) Lowest at 6.71 times
DEBT-EQUITY RATIO (HY) Highest at -1.79 %
DEBTORS TURNOVER RATIO(HY) Lowest at 7.47 times

With ROE of 10.14%, it has a very attractive valuation with a 0.81 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 26.63%, its profits have risen by 3.2% ; the PEG ratio of the company is 2.5
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 Aisan Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Aisan Industry Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Aisan Industry Co., Ltd.

26.63%

1.93

34.09%

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)

12.77%

EBIT Growth (5y)

29.83%

EBIT to Interest (avg)

44.39

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.74

Tax Ratio

34.53%

Dividend Payout Ratio

35.15%

Pledged Shares

Institutional Holding

ROCE (avg)

13.75%

ROE (avg)

8.13%

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

0.81

EV to EBIT

5.66

EV to EBITDA

3.24

EV to Capital Employed

0.80

EV to Sales

0.31

PEG Ratio

2.53

Dividend Yield

ROCE (Latest)

14.06%

ROE (Latest)

10.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

No Trend

OBV

Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -22.65% (YoY

CASH AND EQV(HY)

Highest at JPY 166,637 MM

OPERATING PROFIT(Q)

Highest at JPY 9,267 MM

PRE-TAX PROFIT(Q)

Highest at JPY 6,246 MM

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.71 times

DEBT-EQUITY RATIO (HY)

Highest at -1.79 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.47 times

Here's what is working for Aisan Industry Co., Ltd.

Operating Profit

Highest at JPY 9,267 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 6,246 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 166,637 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -22.65% (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 3,662 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 Aisan Industry Co., Ltd.

Inventory Turnover Ratio

Lowest at 6.71 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debt-Equity Ratio

Highest at -1.79 %

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

Debtors Turnover Ratio

Lowest at 7.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio