Allied Telesis Holdings K.K. (6835) 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

Allied Telesis Holdings K.K.

Harada Industry Co., Ltd.

NIPPON ANTENNA CO., LTD.

TOA Corp. (6809)

Noritsu Koki Co., Ltd.

Furuno Electric Co., Ltd.

Santec Holdings Corp.

Icom, Inc.

TECHNO HORIZON Co., Ltd.

SAXA Holdings, Inc.

Iwatsu Electric Co., Ltd.

Why is Allied Telesis Holdings K.K. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.01%

Healthy long term growth as Operating profit has grown by an annual rate 144.17%

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

INVENTORY TURNOVER RATIO(HY) Highest at 2.24 times
DIVIDEND PAYOUT RATIO(Y) Highest at 67.31%
RAW MATERIAL COST(Y) Fallen by -4.97% (YoY)

With ROE of 19.58%, it has a attractive valuation with a 0.98 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 46.56%, its profits have risen by 443.1% ; the PEG ratio of the company is 0

Market Beating performance in long term as well as near term

Along with generating 46.56% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Allied Telesis Holdings K.K. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Allied Telesis Holdings K.K. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Allied Telesis Holdings K.K.

46.56%

3.38

53.14%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.56%

EBIT Growth (5y)

144.17%

EBIT to Interest (avg)

9.34

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

2.08

Tax Ratio

30.42%

Dividend Payout Ratio

6.07%

Pledged Shares

Institutional Holding

ROCE (avg)

26.24%

ROE (avg)

16.01%

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

0.98

EV to EBIT

1.90

EV to EBITDA

1.46

EV to Capital Employed

0.94

EV to Sales

0.15

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

49.46%

ROE (Latest)

19.58%

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

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

No Trend

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

INVENTORY TURNOVER RATIO(HY)

Highest at 2.24 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 67.31%

RAW MATERIAL COST(Y)

Fallen by -4.97% (YoY

CASH AND EQV(HY)

Highest at JPY 32,768.47 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 5.55

-2What is not working for the Company

INTEREST(Q)

At JPY 50.71 MM has Grown at 19.63%

Here's what is working for Allied Telesis Holdings K.K.

Inventory Turnover Ratio

Highest at 2.24 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at JPY 32,768.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 5.55

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 67.31%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -4.97% (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 315.38 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 Allied Telesis Holdings K.K.

Interest

At JPY 50.71 MM has Grown at 19.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)