Asahi Rubber, Inc. (5162) 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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Asahi Rubber, Inc.

Why is Asahi Rubber, Inc. ?

Poor Management Efficiency with a low ROE of 3.14%

The company has been able to generate a Return on Equity (avg) of 3.14% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 29.10% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 3.14% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.86% and Operating profit at 29.10% over the last 5 years

With a fall in Operating Profit of -8%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 2 consecutive quarters
The company has declared negative results in Mar 26 after 2 consecutive negative quarters
INTEREST(HY) At JPY 13.61 MM has Grown at 126.21%
PRE-TAX PROFIT(Q) At JPY 6.05 MM has Fallen at -86.74%
NET PROFIT(Q) At JPY 1.53 MM has Fallen at -95.49%

With ROE of 4.72%, it has a attractive valuation with a 0.72 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 27.46%, its profits have risen by 614.2% ; the PEG ratio of the company is 0

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 Industrial Products)

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

Is Asahi Rubber, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Asahi Rubber, Inc.

27.46%

1.24

36.51%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.86%

EBIT Growth (5y)

29.10%

EBIT to Interest (avg)

18.77

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.07

Tax Ratio

24.93%

Dividend Payout Ratio

57.02%

Pledged Shares

Institutional Holding

ROCE (avg)

3.51%

ROE (avg)

3.14%

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

0.72

EV to EBIT

16.20

EV to EBITDA

4.76

EV to Capital Employed

0.71

EV to Sales

0.43

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

4.39%

ROE (Latest)

4.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.4 times

-25What is not working for the Company

INTEREST(HY)

At JPY 13.61 MM has Grown at 126.21%

PRE-TAX PROFIT(Q)

At JPY 6.05 MM has Fallen at -86.74%

NET PROFIT(Q)

At JPY 1.53 MM has Fallen at -95.49%

RAW MATERIAL COST(Y)

Grown by 7.5% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 5.14 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.77 times

Here's what is working for Asahi Rubber, Inc.

Debtors Turnover Ratio

Highest at 4.4 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Asahi Rubber, Inc.

Interest

At JPY 13.61 MM has Grown at 126.21%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 6.05 MM has Fallen at -86.74%

over average net sales of the previous four periods of JPY 45.61 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1.53 MM has Fallen at -95.49%

over average net sales of the previous four periods of JPY 34.05 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 5.14 %

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 4.77 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 7.5% (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