ASAHI YUKIZAI Corp. (4216) 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

METAWATER Co., Ltd.

RS Technologies Co. Ltd.

Star Micronics Co., Ltd.

Tsurumi Manufacturing Co., Ltd.

Obara Group, Inc.

ASAHI YUKIZAI Corp.

Union Tool Co.

Eagle Industry Co. Ltd.

Valqua Ltd.

OPTORUN Co., Ltd.

Noritz Corp.

Why is ASAHI YUKIZAI Corp. ?

High Management Efficiency with a high ROE of 11.58%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 8.52% and Operating profit at 20.55%

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(9M) At JPY 41 MM has Grown at 156.25%
INTEREST COVERAGE RATIO(Q) Lowest at 21,407.14
ROCE(HY) Lowest at 9.62%

With ROE of 10.22%, it has a very attractive valuation with a 0.97 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 3.70%, its profits have fallen by -31.5%
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 3.70% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ASAHI YUKIZAI Corp. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is ASAHI YUKIZAI Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ASAHI YUKIZAI Corp.

3.7%

-0.20

26.83%

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)

8.52%

EBIT Growth (5y)

20.55%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

1.13

Tax Ratio

28.11%

Dividend Payout Ratio

27.41%

Pledged Shares

Institutional Holding

ROCE (avg)

19.14%

ROE (avg)

11.58%

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

0.97

EV to EBIT

5.16

EV to EBITDA

4.11

EV to Capital Employed

0.96

EV to Sales

0.67

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

18.70%

ROE (Latest)

10.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 45,745 MM

DEBT-EQUITY RATIO (HY)

Lowest at -21.36 %

-24What is not working for the Company

INTEREST(9M)

At JPY 41 MM has Grown at 156.25%

INTEREST COVERAGE RATIO(Q)

Lowest at 21,407.14

ROCE(HY)

Lowest at 9.62%

NET SALES(Q)

Lowest at JPY 20,009 MM

OPERATING PROFIT(Q)

Lowest at JPY 2,997 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 2,149 MM

NET PROFIT(Q)

Lowest at JPY 1,360 MM

EPS(Q)

Lowest at JPY 72.4

Here's what is working for ASAHI YUKIZAI Corp.

Cash and Eqv

Highest at JPY 45,745 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -21.36 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for ASAHI YUKIZAI Corp.

Interest

At JPY 29 MM has Grown at 222.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 21,407.14 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 20,009 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 20,009 MM has Fallen at -6.02%

over average net sales of the previous four periods of JPY 21,290.5 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 2,997 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 2,149 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 1,360 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 1,360 MM has Fallen at -29.81%

over average net sales of the previous four periods of JPY 1,937.54 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 72.4

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)