Akebono Brake Industry Co., Ltd. (7238) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nishikawa Rubber Co., Ltd.

Taiho Kogyo Co., Ltd.

Ohashi Technica Inc.

Yutaka Giken Co., Ltd.

Ultrafabrics Holdings Co., Ltd.

Nihon Tokushu Toryo Co., Ltd.

Chuo Spring Co., Ltd.

Furukawa Battery Co., Ltd.

Akebono Brake Industry Co., Ltd.

Yorozu Corp.

Sekisui Kasei Co., Ltd.

Why is Akebono Brake Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.23%

The company has been able to generate a Return on Capital Employed (avg) of 3.23% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -3.51% and Operating profit at -3.37% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 3.23% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -3.51% and Operating profit at -3.37% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At JPY 677 MM has Fallen at -57.26%
NET PROFIT(Q) At JPY -49.66 MM has Fallen at -108.55%
OPERATING CASH FLOW(Y) Lowest at JPY -171 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -1.75%, its profits have fallen by -25.6%
At the current price, the company has a high dividend yield of 0.5

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Akebono Brake Industry Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Akebono Brake Industry Co., Ltd.

-4.31%

137.32

39.85%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.51%

EBIT Growth (5y)

-3.37%

EBIT to Interest (avg)

1.40

Debt to EBITDA (avg)

2.59

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.78

Tax Ratio

80.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.23%

ROE (avg)

6.19%

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

0.55

EV to EBIT

14.01

EV to EBITDA

4.48

EV to Capital Employed

0.66

EV to Sales

0.27

PEG Ratio

Dividend Yield

0.50%

ROCE (Latest)

4.72%

ROE (Latest)

6.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -19.12% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 8.51%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.83%

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 677 MM has Fallen at -57.26%

NET PROFIT(Q)

At JPY -49.66 MM has Fallen at -108.55%

OPERATING CASH FLOW(Y)

Lowest at JPY -171 MM

ROCE(HY)

Lowest at -11.89%

CASH AND EQV(HY)

Lowest at JPY 36,925 MM

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

Inventory Turnover Ratio

Highest at 8.51%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.83%

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 -19.12% (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 Akebono Brake Industry Co., Ltd.

Pre-Tax Profit

At JPY 677 MM has Fallen at -57.26%

over average net sales of the previous four periods of JPY 1,584 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -49.66 MM has Fallen at -108.55%

over average net sales of the previous four periods of JPY 580.68 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY -171 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Cash and Eqv

Lowest at JPY 36,925 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents