Brother Industries, Ltd. (6448) 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

Wacom Co., Ltd.

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Elecom Co., Ltd.

Brother Industries, Ltd.

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Canon, Inc.

Riso Kagaku Corp.

Ricoh Co., Ltd.

Seiko Epson Corp.

Why is Brother Industries, Ltd. ?

High Management Efficiency with a high ROE of 9.56%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 60.49

Poor long term growth as Operating profit has grown by an annual rate -0.98% of over the last 5 years

Positive results in Mar 26

ROCE(HY) Highest at 8.61%
PRE-TAX PROFIT(Q) At JPY 16,335 MM has Grown at 173.21%
NET PROFIT(Q) At JPY 15,539 MM has Grown at 255.58%

With ROE of 6.92%, it has a very attractive valuation with a 1.03 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 53.47%, its profits have fallen by -18.6%

Underperformed the market in the last 1 year

The stock has generated a return of 53.47% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Brother Industries, Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is Brother Industries, Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Brother Industries, Ltd.

52.68%

746.14

27.90%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.23%

EBIT Growth (5y)

-0.98%

EBIT to Interest (avg)

60.49

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.22

Tax Ratio

26.82%

Dividend Payout Ratio

46.67%

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

16.71%

ROE (avg)

9.56%

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

1.03

EV to EBIT

8.20

EV to EBITDA

4.75

EV to Capital Employed

1.04

EV to Sales

0.67

PEG Ratio

Dividend Yield

ROCE (Latest)

12.72%

ROE (Latest)

6.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

Mildly Bearish

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

12What is working for the Company

ROCE(HY)

Highest at 8.61%

PRE-TAX PROFIT(Q)

At JPY 16,335 MM has Grown at 173.21%

NET PROFIT(Q)

At JPY 15,539 MM has Grown at 255.58%

RAW MATERIAL COST(Y)

Fallen by -7.21% (YoY

NET SALES(Q)

Highest at JPY 232,452 MM

-9What is not working for the Company

INTEREST(Q)

Highest at JPY 480 MM

Here's what is working for Brother Industries, Ltd.

Net Profit

At JPY 15,539 MM has Grown at 285.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 16,335 MM has Grown at 173.21%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 15,539 MM has Grown at 255.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 232,452 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -7.21% (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 Brother Industries, Ltd.

Interest

At JPY 480 MM has Grown at 45.02%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 480 MM

in the last five periods and Increased by 45.02% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)