ASAHI KOGYOSHA CO., LTD. (1975) 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

ASAHI KOGYOSHA CO., LTD.

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Tokyo Energy & Systems, Inc.

Nittoc Construction Co., Ltd.

Fukuda Corp.

Daiichi Kensetsu Corp.

P.S. Mitsubishi Construction Co., Ltd.

Fuji Furukawa Engineering & Construction Co. Ltd.

Why is ASAHI KOGYOSHA CO., LTD. ?

Low Debt Company with Strong Long Term Fundamental Strength

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 16.28% signifying high profitability per unit of total capital (equity and debt)

With ROE of 17.22%, it has a very attractive valuation with a 2.51 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 25.75%, its profits have risen by 59.1% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to ASAHI KOGYOSHA CO., LTD. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is ASAHI KOGYOSHA CO., LTD. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

ASAHI KOGYOSHA CO., LTD.

25.75%

3.85

43.08%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.79%

EBIT Growth (5y)

42.71%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

2.06

Tax Ratio

25.89%

Dividend Payout Ratio

40.21%

Pledged Shares

Institutional Holding

ROCE (avg)

21.43%

ROE (avg)

8.40%

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

2.51

EV to EBIT

11.42

EV to EBITDA

10.66

EV to Capital Employed

2.65

EV to Sales

1.12

PEG Ratio

0.25

Dividend Yield

ROCE (Latest)

23.24%

ROE (Latest)

17.22%

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

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

16What is working for the Company

ROCE(HY)

Highest at 19.9%

RAW MATERIAL COST(Y)

Fallen by -15.42% (YoY

CASH AND EQV(HY)

Highest at JPY 36,919 MM

NET SALES(Q)

Highest at JPY 36,256 MM

OPERATING PROFIT(Q)

Highest at JPY 5,471 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.09 %

PRE-TAX PROFIT(Q)

Highest at JPY 5,300 MM

NET PROFIT(Q)

Highest at JPY 4,374 MM

EPS(Q)

Highest at JPY 169.04

-11What is not working for the Company

INTEREST(Q)

Highest at JPY 25 MM

Here's what is working for ASAHI KOGYOSHA CO., LTD.

Net Sales

Highest at JPY 36,256 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 36,256 MM has Grown at 23.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 5,471 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 15.09 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 5,300 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 4,374 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 169.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 36,919 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -15.42% (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

Depreciation

Highest at JPY 188 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 ASAHI KOGYOSHA CO., LTD.

Interest

At JPY 25 MM has Grown at 19.05%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 25 MM

in the last five periods and Increased by 19.05% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)