Central Automotive Products Ltd. (8117) 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

Central Automotive Products Ltd.

Mitani Corp.

Yuasa Trading Co., Ltd.

ARE Holdings, Inc.

Yamazen Corp.

NICHIDEN Corp.

SAN-AI OBBLI Co., Ltd.

Taikisha Ltd.

Trusco Nakayama Corp.

Yellow Hat Ltd.

Autobacs Seven Co., Ltd.

Why is Central Automotive Products Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.17%

Healthy long term growth as Net Sales has grown by an annual rate of 10.41% and Operating profit at 18.95%
Company has very low debt and has enough cash to service the debt requirements

Positive results in Jun 26

NET SALES(9M) At JPY 37,683.43 MM has Grown at 18.08%
INVENTORY TURNOVER RATIO(HY) Highest at 11.65 times
RAW MATERIAL COST(Y) Fallen by 1.47% (YoY)

With ROE of 14.88%, it has a very attractive valuation with a 2.05 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 16.97%, its profits have risen by 6.8%
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 Central Automotive Products Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Central Automotive Products Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Central Automotive Products Ltd.

16.97%

1.35

26.85%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.41%

EBIT Growth (5y)

18.95%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.76

Tax Ratio

28.43%

Dividend Payout Ratio

36.66%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

33.36%

ROE (avg)

14.17%

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

2.05

EV to EBIT

8.60

EV to EBITDA

8.05

EV to Capital Employed

2.93

EV to Sales

2.12

PEG Ratio

Dividend Yield

ROCE (Latest)

34.06%

ROE (Latest)

14.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

7What is working for the Company

NET SALES(9M)

At JPY 37,683.43 MM has Grown at 18.08%

INVENTORY TURNOVER RATIO(HY)

Highest at 11.65 times

RAW MATERIAL COST(Y)

Fallen by 1.47% (YoY

CASH AND EQV(HY)

Highest at JPY 58,468.22 MM

DEBT-EQUITY RATIO (HY)

Lowest at -46.1 %

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Central Automotive Products Ltd.

Inventory Turnover Ratio

Highest at 11.65 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

At JPY 37,683.43 MM has Grown at 18.08%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 58,468.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -46.1 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.47% (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 Central Automotive Products Ltd.

Non Operating Income

Highest at JPY 0.15 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income