Applied Co., Ltd. (3020) 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

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Applied Co., Ltd.

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GEO Holdings Corp.

PLAZA HOLDINGS CO., LTD.

Why is Applied Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 15.31%

Healthy long term growth as Operating profit has grown by an annual rate 11.25%
Company has very low debt and has enough cash to service the debt requirements

Positive results in Jun 25

ROCE(HY) Highest at 16.36%
RAW MATERIAL COST(Y) Fallen by -7.65% (YoY)
NET PROFIT(9M) Higher at JPY 1,492 MM

With ROE of 15.03%, it has a very attractive valuation with a 0.76 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 71.66%, its profits have risen by 32.2% ; the PEG ratio of the company is 0.2

Market Beating performance in long term as well as near term

Along with generating 71.66% 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 Applied Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Applied Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Applied Co., Ltd.

71.66%

1.96

32.79%

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)

7.98%

EBIT Growth (5y)

11.25%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

3.87

Tax Ratio

33.69%

Dividend Payout Ratio

15.30%

Pledged Shares

Institutional Holding

ROCE (avg)

31.11%

ROE (avg)

15.31%

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

0.76

EV to EBIT

1.03

EV to EBITDA

0.97

EV to Capital Employed

0.55

EV to Sales

0.07

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

53.91%

ROE (Latest)

15.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

8What is working for the Company

ROCE(HY)

Highest at 16.36%

RAW MATERIAL COST(Y)

Fallen by -7.65% (YoY

NET PROFIT(9M)

Higher at JPY 1,492 MM

CASH AND EQV(HY)

Highest at JPY 11,499 MM

DEBT-EQUITY RATIO (HY)

Lowest at -42.81 %

INVENTORY TURNOVER RATIO(HY)

Highest at 19.78%

DEBTORS TURNOVER RATIO(HY)

Highest at 7.65%

-12What is not working for the Company

INTEREST(HY)

At JPY 2 MM has Grown at 100%

NET SALES(Q)

Lowest at JPY 9,712 MM

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

Cash and Eqv

Highest at JPY 11,499 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -42.81 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 19.78%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 7.65%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at JPY 1,492 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -7.65% (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

Here's what is not working for Applied Co., Ltd.

Interest

At JPY 2 MM has Grown at 100%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 9,712 MM has Fallen at -17.85%

over average net sales of the previous four periods of JPY 11,822 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 9,712 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)