Azbil Corp. (6845) 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

Nissan Chemical Corp.

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Lasertec Corp.

Azbil Corp.

Yokogawa Electric Corp.

ULVAC, Inc.

Toshiba Tec Corp.

Why is Azbil Corp. ?

Weak Long Term Fundamental Strength with a 3.00% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 3.00% over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 7,876.47
INTEREST(Q) Highest at JPY 102 MM
OPERATING PROFIT(Q) Lowest at JPY 8,034 MM

With ROE of 14.94%, it has a fair valuation with a 3.59 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 4.88%, its profits have fallen by -12.7%

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

The stock has generated a return of 4.88% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Azbil Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Azbil Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Azbil Corp.

4.88%

1.53

31.17%

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)

3.00%

EBIT Growth (5y)

10.39%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

1.24

Tax Ratio

23.08%

Dividend Payout Ratio

42.24%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

25.56%

ROE (avg)

12.95%

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

3.59

EV to EBIT

17.82

EV to EBITDA

15.38

EV to Capital Employed

4.61

EV to Sales

2.69

PEG Ratio

Dividend Yield

ROCE (Latest)

25.90%

ROE (Latest)

14.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.09 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.2 times

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 7,876.47

INTEREST(Q)

Highest at JPY 102 MM

OPERATING PROFIT(Q)

Lowest at JPY 8,034 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.62 %

NET PROFIT(Q)

Lowest at JPY 5,091 MM

EPS(Q)

Lowest at JPY 9.95

Here's what is working for Azbil Corp.

Inventory Turnover Ratio

Highest at 4.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 3,069 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 3,069 MM has Grown at 73.98%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Azbil Corp.

Interest

At JPY 102 MM has Grown at 218.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 7,876.47

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 102 MM

in the last five periods and Increased by 218.75% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 8,034 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 12.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 5,091 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 9.95

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.36 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income