AOI Electronics Co., Ltd. (6832) 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

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AOI Electronics Co., Ltd.

Why is AOI Electronics Co., Ltd. ?

Poor Management Efficiency with a low ROE of 1.67%

The company has been able to generate a Return on Equity (avg) of 1.67% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.75% and Operating profit at -32.67% over the last 5 years

NET PROFIT(9M) At JPY 549.78 MM has Grown at -29.63%
INTEREST COVERAGE RATIO(Q) Lowest at 2,387.68
RAW MATERIAL COST(Y) Grown by 9.79% (YoY)

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 19.65%, its profits have risen by 108.2% ; the PEG ratio of the company is 1.1

Underperformed the market in the last 1 year

The stock has generated a return of 19.65% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

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 Other Electrical Equipment)

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

Is AOI Electronics Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

AOI Electronics Co., Ltd.

19.65%

-0.23

45.43%

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)

-3.75%

EBIT Growth (5y)

-32.67%

EBIT to Interest (avg)

54.15

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.74

Tax Ratio

54.69%

Dividend Payout Ratio

339.66%

Pledged Shares

Institutional Holding

ROCE (avg)

4.29%

ROE (avg)

1.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

121

Industry P/E

Price to Book Value

0.50

EV to EBIT

5.61

EV to EBITDA

1.14

EV to Capital Employed

0.10

EV to Sales

0.07

PEG Ratio

1.11

Dividend Yield

ROCE (Latest)

1.84%

ROE (Latest)

0.41%

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 Bearish

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

NET PROFIT(Q)

At JPY 135.68 MM has Grown at 379.95%

PRE-TAX PROFIT(Q)

At JPY 153.64 MM has Grown at 68.04%

-20What is not working for the Company

NET PROFIT(9M)

At JPY 549.78 MM has Grown at -29.63%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,387.68

RAW MATERIAL COST(Y)

Grown by 9.79% (YoY

CASH AND EQV(HY)

Lowest at JPY 34,326.33 MM

DEBT-EQUITY RATIO (HY)

Highest at -15.37 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.67 times

INTEREST(Q)

Highest at JPY 24.29 MM

Here's what is working for AOI Electronics Co., Ltd.

Net Profit

At JPY 135.68 MM has Grown at 379.95%

over average net sales of the previous four periods of JPY 28.27 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 153.64 MM has Grown at 68.04%

over average net sales of the previous four periods of JPY 91.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Depreciation

Highest at JPY 635.51 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 AOI Electronics Co., Ltd.

Interest

At JPY 24.29 MM has Grown at 90.78%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,387.68

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 24.29 MM

in the last five periods and Increased by 90.78% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 34,326.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -15.37 %

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

Inventory Turnover Ratio

Lowest at 6.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 9.79% (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