ScoreWhy is Canare Electric Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 2.22% and Operating profit at 5.43% over the last 5 years
3
Negative results in Dec 25
- INTEREST COVERAGE RATIO(Q) Lowest at 8,887.28
- DEBT-EQUITY RATIO (HY) Highest at 0 %
- INTEREST(Q) Highest at JPY 3.33 MM
4
With ROE of 6.04%, it has a very attractive valuation with a 0.61 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 16.19%, its profits have fallen by -7.5%
- At the current price, the company has a high dividend yield of 0.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 16.19% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Canare Electric Co., Ltd. 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 Canare Electric Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Canare Electric Co., Ltd.
16.19%
0.72
25.21%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.22%
EBIT Growth (5y)
5.43%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.54
Sales to Capital Employed (avg)
0.72
Tax Ratio
28.97%
Dividend Payout Ratio
37.34%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
20.30%
ROE (avg)
5.66%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.60
EV to EBIT
0.74
EV to EBITDA
0.64
EV to Capital Employed
0.14
EV to Sales
0.09
PEG Ratio
NA
Dividend Yield
0.06%
ROCE (Latest)
18.34%
ROE (Latest)
6.04%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 117.97%
RAW MATERIAL COST(Y)
Fallen by -0.94% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 9.88 times
-19What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 8,887.28
DEBT-EQUITY RATIO
(HY)
Highest at 0 %
INTEREST(Q)
Highest at JPY 3.33 MM
OPERATING PROFIT(Q)
Lowest at JPY 295.5 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 8.92 %
PRE-TAX PROFIT(Q)
Lowest at JPY 258.07 MM
NET PROFIT(Q)
Lowest at JPY 220.97 MM
EPS(Q)
Lowest at JPY 32.21
Here's what is working for Canare Electric Co., Ltd.
Debtors Turnover Ratio
Highest at 9.88 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio
Highest at 117.97%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -0.94% (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 65.78 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 65.78 MM has Grown at 26.9%
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 Canare Electric Co., Ltd.
Interest
At JPY 3.33 MM has Grown at 127.9%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 8,887.28
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 3.33 MM
in the last five periods and Increased by 127.9% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 295.5 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 8.92 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 258.07 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 220.97 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 32.21
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Highest at 0 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income
Highest at JPY 0.12 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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