Asaka Riken Co., Ltd. (5724) 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

Nihon Seiko Co., Ltd.

Kurotani Corp.

Chugai Mining Co., Ltd.

Asaka Riken Co., Ltd.

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Yotai Refractories Co., Ltd.

Mitsui Mining & Smelting Co., Ltd.

Toho Zinc Co., Ltd.

Toho Titanium Co., Ltd.

OSAKA Titanium Technologies Co., Ltd.

Nippon Denkai Ltd.

Why is Asaka Riken Co., Ltd. ?

High Management Efficiency with a high ROCE of 8.86%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.86%

With a growth in Operating Profit of 34.61%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 13.05%
INTEREST COVERAGE RATIO(Q) Highest at 1,325.48
OPERATING PROFIT(Q) Highest at JPY 511.32 MM

With ROCE of 7.01%, it has a very expensive valuation with a 2.68 Enterprise value to Capital Employed

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 102.38%, its profits have risen by 66.4% ; the PEG ratio of the company is 0.7

Market Beating Performance

The stock has generated a return of 102.38% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 69.64%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Asaka Riken Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Asaka Riken Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Asaka Riken Co., Ltd.

92.96%

1.68

87.30%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.78%

EBIT Growth (5y)

37.41%

EBIT to Interest (avg)

12.97

Debt to EBITDA (avg)

1.90

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

0.89

Tax Ratio

21.90%

Dividend Payout Ratio

20.08%

Pledged Shares

Institutional Holding

ROCE (avg)

8.86%

ROE (avg)

8.27%

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

3.95

EV to EBIT

38.28

EV to EBITDA

24.46

EV to Capital Employed

2.68

EV to Sales

2.68

PEG Ratio

0.67

Dividend Yield

ROCE (Latest)

7.01%

ROE (Latest)

8.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

41What is working for the Company

ROCE(HY)

Highest at 13.05%

INTEREST COVERAGE RATIO(Q)

Highest at 1,325.48

OPERATING PROFIT(Q)

Highest at JPY 511.32 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.3 %

PRE-TAX PROFIT(Q)

Highest at JPY 379.54 MM

NET PROFIT(Q)

Highest at JPY 284.92 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 7.1%

RAW MATERIAL COST(Y)

Fallen by -32.84% (YoY

CASH AND EQV(HY)

Highest at JPY 11,105.28 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 17.31

NET SALES(Q)

Highest at JPY 2,793.32 MM

EPS(Q)

Highest at JPY 56.15

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 92.98 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.02 times

INTEREST(Q)

At JPY 38.58 MM has Grown at 18.66%

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

Net Sales

At JPY 2,793.32 MM has Grown at 25.13%

over average net sales of the previous four periods of JPY 2,232.27 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Interest Coverage Ratio

Highest at 1,325.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 511.32 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 18.3 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 379.54 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 379.54 MM has Grown at 167.57%

over average net sales of the previous four periods of JPY 141.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 284.92 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

At JPY 284.92 MM has Grown at 152.52%

over average net sales of the previous four periods of JPY 112.83 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 2,793.32 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

EPS

Highest at JPY 56.15

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 11,105.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 17.31

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 7.1%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -32.84% (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 Riken Co., Ltd.

Interest

At JPY 38.58 MM has Grown at 18.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 92.98 % 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

Inventory Turnover Ratio

Lowest at 2.02 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio