Alpha Corp. (Yokohama) (3434) 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

Yorozu Corp.

Ohashi Technica Inc.

Ultrafabrics Holdings Co., Ltd.

SUNCALL CORP.

Alpha Corp. (Yokohama)

Sekisui Kasei Co., Ltd.

Mikuni Corp.

Akebono Brake Industry Co., Ltd.

Kyowa Leather Cloth Co., Ltd.

Chuo Spring Co., Ltd.

Okada Aiyon Corp.

Why is Alpha Corp. (Yokohama) ?

Poor Management Efficiency with a low ROCE of 2.79%

The company has been able to generate a Return on Capital Employed (avg) of 2.79% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 3.98

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 3.98
The company has been able to generate a Return on Equity (avg) of 3.73% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 28.81% of over the last 5 years

Flat results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 27.57 %
PRE-TAX PROFIT(Q) Lowest at JPY 251 MM
NET PROFIT(Q) Lowest at JPY 70.95 MM

With ROCE of 1.78%, it has a very attractive valuation with a 0.44 Enterprise value to Capital Employed

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 2.25%, its profits have risen by 76% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Alpha Corp. (Yokohama) 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 Alpha Corp. (Yokohama) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Alpha Corp. (Yokohama)

-100.0%

-0.63

18.43%

Japan Nikkei 225

58.07%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.08%

EBIT Growth (5y)

28.81%

EBIT to Interest (avg)

3.68

Debt to EBITDA (avg)

1.73

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.41

Tax Ratio

31.66%

Dividend Payout Ratio

34.73%

Pledged Shares

Institutional Holding

ROCE (avg)

2.62%

ROE (avg)

3.73%

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

0.33

EV to EBIT

24.87

EV to EBITDA

4.23

EV to Capital Employed

0.44

EV to Sales

0.27

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

1.78%

ROE (Latest)

3.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

OBV

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

7What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,152.94

RAW MATERIAL COST(Y)

Fallen by -21.15% (YoY

NET PROFIT(9M)

Higher at JPY 1,066.28 MM

-9What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 27.57 %

PRE-TAX PROFIT(Q)

Lowest at JPY 251 MM

NET PROFIT(Q)

Lowest at JPY 70.95 MM

EPS(Q)

Lowest at JPY 6.24

Here's what is working for Alpha Corp. (Yokohama)

Interest Coverage Ratio

Highest at 2,152.94

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Raw Material Cost

Fallen by -21.15% (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 1,153 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 Alpha Corp. (Yokohama)

Net Profit

At JPY 70.95 MM has Fallen at -80.09%

over average net sales of the previous four periods of JPY 356.33 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 251 MM has Fallen at -48.57%

over average net sales of the previous four periods of JPY 488 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 251 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 70.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 6.24

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 27.57 %

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