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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sumitomo Rubber Industries, Ltd.

Bridgestone Corp.

Toyo Tire Corp.

The Yokohama Rubber Co., Ltd.

TS TECH CO., LTD.

JVCKenwood Corp.

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 a growth in Operating Profit of 25.62%, the company declared Very Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at JPY 681,361 MM
NET PROFIT(HY) At JPY 205,926 MM has Grown at 90.21%
RAW MATERIAL COST(Y) Fallen by -0.83% (YoY)

With ROE of 11.87%, it has a very attractive valuation with a 1.22 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 -42.59%, its profits have risen by 41.5%
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Bridgestone Corp.

-42.98%

144.39

56.62%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.14%

EBIT Growth (5y)

21.95%

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)

1.08

Tax Ratio

27.40%

Dividend Payout Ratio

46.75%

Pledged Shares

Institutional Holding

0.10%

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

1.22

EV to EBIT

8.85

EV to EBITDA

5.13

EV to Capital Employed

1.23

EV to Sales

0.97

PEG Ratio

Dividend Yield

ROCE (Latest)

13.91%

ROE (Latest)

11.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 681,361 MM

NET PROFIT(HY)

At JPY 205,926 MM has Grown at 90.21%

RAW MATERIAL COST(Y)

Fallen by -0.83% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.01 times

PRE-TAX PROFIT(Q)

Highest at JPY 126,121 MM

-4What is not working for the Company

INTEREST(HY)

At JPY 23,063 MM has Grown at 27.67%

Here's what is working for Bridgestone Corp.

Net Profit

At JPY 205,926 MM has Grown at 90.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 681,361 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit

Highest at JPY 126,121 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Highest at 3.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.83% (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 91,984 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.

Interest

At JPY 23,063 MM has Grown at 27.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)