Bridgestone Corp. (5108) 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

Sumitomo Rubber Industries, Ltd.

Toyo Tire Corp.

Bridgestone Corp.

The Yokohama Rubber Co., Ltd.

JVCKenwood Corp.

TS TECH CO., LTD.

Why is Bridgestone Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 19.07

With ROE of 8.26%, it has a very attractive valuation with a 1.18 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 35.94%, its profits have fallen by -13.1%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Bridgestone Corp. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Bridgestone Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Bridgestone Corp.

34.63%

752.40

23.01%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.55%

EBIT Growth (5y)

9.74%

EBIT to Interest (avg)

19.07

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

1.10

Tax Ratio

27.40%

Dividend Payout Ratio

50.46%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

13.52%

ROE (avg)

9.03%

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

1.18

EV to EBIT

8.54

EV to EBITDA

4.90

EV to Capital Employed

1.19

EV to Sales

0.91

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

13.89%

ROE (Latest)

8.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.71% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 4.27

OPERATING PROFIT MARGIN(Q)

Highest at 19.71 %

-23What is not working for the Company

NET PROFIT(Q)

At JPY 39,494 MM has Fallen at -68.37%

ROCE(HY)

Lowest at 5.52%

INTEREST(Q)

At JPY 9,917 MM has Grown at 40.85%

PRE-TAX PROFIT(Q)

At JPY 70,367 MM has Fallen at -59.68%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.78%

Here's what is working for Bridgestone Corp.

Operating Profit Margin

Highest at 19.71 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at JPY 4.27

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -8.71% (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

Depreciation

Highest at JPY 89,996 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Bridgestone Corp.

Net Profit

At JPY 39,494 MM has Fallen at -68.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 9,917 MM has Grown at 40.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 70,367 MM has Fallen at -59.68%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 2.78%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio