AMADA Co., Ltd. (6113) 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

Daifuku Co., Ltd.

Ebara Corp.

MISUMI Group, Inc.

AMADA Co., Ltd.

DISCO Corp.

YASKAWA Electric Corp.

HOSHIZAKI Corp.

Toyota Industries Corp.

OMRON Corp.

SUMCO Corp.

TOSHIBA Corp.

Why is AMADA Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.17%

The company has been able to generate a Return on Equity (avg) of 6.17% signifying low profitability per unit of shareholders funds

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 9.61% and Operating profit at 18.75% over the last 5 years

Negative results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 924.61
RAW MATERIAL COST(Y) Grown by 6.31% (YoY)
DEBT-EQUITY RATIO (HY) Highest at -8.33 %

With ROE of 5.79%, it has a very attractive valuation with a 1.47 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 99.48%, its profits have fallen by -8.1%
At the current price, the company has a high dividend yield of 0

Majority shareholders : Non Institution

Market Beating performance in long term as well as near term

Along with generating 99.48% 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 hold?

Overall Portfolio exposure to AMADA Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

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

Is AMADA Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

AMADA Co., Ltd.

99.48%

933.72

31.07%

Japan Nikkei 225

69.82%

2.78

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.61%

EBIT Growth (5y)

18.75%

EBIT to Interest (avg)

13.02

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

0.73

Tax Ratio

33.68%

Dividend Payout Ratio

62.80%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

10.80%

ROE (avg)

6.17%

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

1.47

EV to EBIT

16.37

EV to EBITDA

11.11

EV to Capital Employed

1.52

EV to Sales

1.72

PEG Ratio

Dividend Yield

ROCE (Latest)

9.32%

ROE (Latest)

5.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 263,727 MM

NET SALES(Q)

At JPY 110,704 MM has Grown at 22.6%

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 924.61

RAW MATERIAL COST(Y)

Grown by 6.31% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -8.33 %

INTEREST(Q)

Highest at JPY 1,800 MM

Here's what is working for AMADA Co., Ltd.

Net Sales

At JPY 110,704 MM has Grown at 22.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 263,727 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 5,430 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 AMADA Co., Ltd.

Interest

At JPY 1,800 MM has Grown at 279.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 924.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 1,800 MM

in the last five periods and Increased by 279.75% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -8.33 %

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

Raw Material Cost

Grown by 6.31% (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