Broad Enterprise Co., Ltd. () 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

ASAHI Net, Inc.

Internet Initiative Japan, Inc.

Nippon Telegraph & Telephone Corp.

ARTERIA Networks Corp.

Broad Enterprise Co., Ltd.

Why is Broad Enterprise Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 8.45% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 8.45% over the last 5 years

Flat results in Dec 25

ROCE(HY) Lowest at 29.42%
DEBT-EQUITY RATIO (HY) Highest at 315.65 %
RAW MATERIAL COST(Y) Grown by 12.73% (YoY)

With ROCE of 16.72%, it has a attractive valuation with a 1.65 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 62.06%, its profits have risen by 41% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Broad Enterprise Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Broad Enterprise Co., Ltd.

-100.0%

1.01

59.17%

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)

8.45%

EBIT Growth (5y)

-8.01%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

3.02

Net Debt to Equity (avg)

2.46

Sales to Capital Employed (avg)

1.06

Tax Ratio

38.18%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

21.68%

ROE (avg)

36.44%

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

3.27

EV to EBIT

9.90

EV to EBITDA

9.10

EV to Capital Employed

1.65

EV to Sales

1.50

PEG Ratio

0.26

Dividend Yield

ROCE (Latest)

16.72%

ROE (Latest)

31.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

17What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 11.03 times

NET SALES(Q)

Highest at JPY 2,697.76 MM

OPERATING PROFIT(Q)

Highest at JPY 343.68 MM

PRE-TAX PROFIT(Q)

Highest at JPY 300.74 MM

-18What is not working for the Company

ROCE(HY)

Lowest at 29.42%

DEBT-EQUITY RATIO (HY)

Highest at 315.65 %

RAW MATERIAL COST(Y)

Grown by 12.73% (YoY

INTEREST(Q)

Highest at JPY 17.77 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.74 %

Here's what is working for Broad Enterprise Co., Ltd.

Net Sales

At JPY 2,697.76 MM has Grown at 73.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 11.03 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 2,697.76 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 343.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 300.74 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Depreciation

Highest at JPY 16.49 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 Broad Enterprise Co., Ltd.

Interest

At JPY 17.77 MM has Grown at 12.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 315.65 % 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

Interest

Highest at JPY 17.77 MM

in the last five periods and Increased by 12.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 12.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 12.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales