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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ohashi Technica Inc.

Mikuni Corp.

Ultrafabrics Holdings Co., Ltd.

SUNCALL CORP.

Alpha Corp. (Yokohama)

Okada Aiyon Corp.

Chuo Spring Co., Ltd.

Akebono Brake Industry Co., Ltd.

Yorozu Corp.

Kyowa Leather Cloth Co., Ltd.

Sekisui Kasei Co., Ltd.

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 -12.80% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At JPY 709 MM has Grown at -41.27%
ROCE(HY) Lowest at -1.52%
INTEREST COVERAGE RATIO(Q) Lowest at 871

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 9.02%, its profits have fallen by -84.9%

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)

9.02%

-0.75

22.05%

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)

4.08%

EBIT Growth (5y)

-12.80%

EBIT to Interest (avg)

3.98

Debt to EBITDA (avg)

1.75

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.44

Tax Ratio

1.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.79%

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

0.29

EV to EBIT

18.00

EV to EBITDA

3.76

EV to Capital Employed

0.40

EV to Sales

0.22

PEG Ratio

Dividend Yield

ROCE (Latest)

2.20%

ROE (Latest)

1.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

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

6What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 301 MM has Grown at 226.29%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.75%

NET PROFIT(Q)

At JPY 232 MM has Grown at 76.66%

-21What is not working for the Company

NET PROFIT(HY)

At JPY 709 MM has Grown at -41.27%

ROCE(HY)

Lowest at -1.52%

INTEREST COVERAGE RATIO(Q)

Lowest at 871

RAW MATERIAL COST(Y)

Grown by 5.3% (YoY

NET SALES(Q)

Lowest at JPY 16,703 MM

INTEREST(Q)

Highest at JPY 100 MM

OPERATING PROFIT(Q)

Lowest at JPY 871 MM

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

Pre-Tax Profit

At JPY 301 MM has Grown at 226.29%

over average net sales of the previous four periods of JPY 92.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Highest at 4.75% and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

At JPY 232 MM has Grown at 76.66%

over average net sales of the previous four periods of JPY 131.33 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Here's what is not working for Alpha Corp. (Yokohama)

Net Sales

At JPY 16,703 MM has Fallen at -9.11%

over average net sales of the previous four periods of JPY 18,377.75 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 871

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 16,703 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 100 MM

in the last five periods and Increased by 5.26% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 871 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Raw Material Cost

Grown by 5.3% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales