Asaka Industrial Co., Ltd. (5962) 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

Asaka Industrial Co., Ltd.

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Lobtex Co., Ltd.

Why is Asaka Industrial Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.99

Healthy long term growth as Operating profit has grown by an annual rate 28.37%

With a growth in Net Profit of 346.16%, the company declared Very Positive results in Dec 25

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
DEBTORS TURNOVER RATIO(HY) Highest at 4.8 times
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -11.09% (YoY)

With ROE of 4.97%, it has a very attractive valuation with a 0.39 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 28.32%, its profits have fallen by -26.2%
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 28.32% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Asaka Industrial Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Products should be less than 30%

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

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

Is Asaka Industrial Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Asaka Industrial Co., Ltd.

-100.0%

1.08

26.14%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.13%

EBIT Growth (5y)

28.37%

EBIT to Interest (avg)

27.99

Debt to EBITDA (avg)

0.14

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

1.67

Tax Ratio

32.38%

Dividend Payout Ratio

21.09%

Pledged Shares

Institutional Holding

ROCE (avg)

7.75%

ROE (avg)

5.53%

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

0.39

EV to EBIT

5.09

EV to EBITDA

3.97

EV to Capital Employed

0.38

EV to Sales

0.18

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

7.41%

ROE (Latest)

4.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

16What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.8 times

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -11.09% (YoY

OPERATING PROFIT(Q)

Highest at JPY 158.13 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.27 %

PRE-TAX PROFIT(Q)

Highest at JPY 146.68 MM

NET PROFIT(Q)

Highest at JPY 100.6 MM

EPS(Q)

Highest at JPY 117.85

-8What is not working for the Company

INTEREST(HY)

At JPY 7.51 MM has Grown at 35.06%

Here's what is working for Asaka Industrial Co., Ltd.

Pre-Tax Profit

At JPY 146.68 MM has Grown at 218.52%

over average net sales of the previous four periods of JPY 46.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 100.6 MM has Grown at 234.32%

over average net sales of the previous four periods of JPY 30.09 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 4.8 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Profit

Highest at JPY 158.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 7.27 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 146.68 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 100.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 117.85

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -11.09% (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 Asaka Industrial Co., Ltd.

Interest

At JPY 7.51 MM has Grown at 35.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)