Arisawa Mfg. Co., Ltd. (5208) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sanyo Denki Co., Ltd.

gremz, Inc.

Meidensha Corp.

SWCC Corp.

Aichi Electric Co., Ltd.

Maxell Ltd.

Arisawa Mfg. Co., Ltd.

Sinfonia Technology Co., Ltd.

Mirai Industry Co., Ltd.

Tatsuta Electric Wire & Cable Co., Ltd.

SEC Carbon Ltd.

Why is Arisawa Mfg. Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.61

Poor long term growth as Net Sales has grown by an annual rate of 1.62% and Operating profit at 12.93% over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

ROCE(HY) Highest at 7.99%
INVENTORY TURNOVER RATIO(HY) Highest at 2.92%

With ROE of 8.19%, it has a very attractive valuation with a 0.98 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 17.85%, its profits have risen by 135.2% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 17.85% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Arisawa Mfg. 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 Arisawa Mfg. Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arisawa Mfg. Co., Ltd.

16.83%

0.47

20.68%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.62%

EBIT Growth (5y)

12.93%

EBIT to Interest (avg)

20.61

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

0.79

Tax Ratio

24.58%

Dividend Payout Ratio

80.34%

Pledged Shares

Institutional Holding

ROCE (avg)

7.67%

ROE (avg)

6.39%

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

0.98

EV to EBIT

8.29

EV to EBITDA

5.78

EV to Capital Employed

0.98

EV to Sales

0.81

PEG Ratio

0.09

Dividend Yield

0.04%

ROCE (Latest)

11.82%

ROE (Latest)

8.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Bullish

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

3What is working for the Company

ROCE(HY)

Highest at 7.99%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.92%

-10What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -12.78 %

INTEREST COVERAGE RATIO(Q)

Lowest at 3,234.6

RAW MATERIAL COST(Y)

Grown by 9.85% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 1,434.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.36 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,042.03 MM

NET PROFIT(Q)

Lowest at JPY 728.19 MM

EPS(Q)

Lowest at JPY 21.91

Here's what is working for Arisawa Mfg. Co., Ltd.

Inventory Turnover Ratio

Highest at 2.92%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Interest Coverage Ratio

Lowest at 3,234.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -12.78 % and Grown

In each half year 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

Operating Profit

Lowest at JPY 1,434.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 11.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 1,042.03 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 728.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 21.91

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 9.85% (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