Chofu Seisakusho Co., Ltd. (5946) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

RS Technologies Co. Ltd.

Star Micronics Co., Ltd.

Tsurumi Manufacturing Co., Ltd.

Obara Group, Inc.

ASAHI YUKIZAI Corp.

Union Tool Co.

Eagle Industry Co. Ltd.

Valqua Ltd.

Chofu Seisakusho Co., Ltd.

OPTORUN Co., Ltd.

Noritz Corp.

Why is Chofu Seisakusho Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.57%

The company has been able to generate a Return on Equity (avg) of 2.57% signifying low profitability per unit of shareholders funds

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 0.73% over the last 5 years

Flat results in Jun 25

ROCE(HY) Lowest at 1.71%
INTEREST(Q) At JPY 2 MM has Grown at 100%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

With ROE of 2.28%, it has a very attractive valuation with a 0.47 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 6.07%, its profits have fallen by -14.5%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 6.07% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 27.37%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chofu Seisakusho Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Chofu Seisakusho Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chofu Seisakusho Co., Ltd.

-100.0%

-0.46

17.50%

Japan Nikkei 225

27.37%

1.06

25.71%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.73%

EBIT Growth (5y)

-7.50%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.36

Tax Ratio

31.11%

Dividend Payout Ratio

49.77%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

2.13%

ROE (avg)

2.57%

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

0.47

EV to EBIT

30.48

EV to EBITDA

16.46

EV to Capital Employed

0.40

EV to Sales

1.03

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

1.31%

ROE (Latest)

2.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

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

6What is working for the Company

NET PROFIT(Q)

At JPY 1,075 MM has Grown at 209.8%

RAW MATERIAL COST(Y)

Fallen by -3.18% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 8.19%

-7What is not working for the Company

ROCE(HY)

Lowest at 1.71%

INTEREST(Q)

At JPY 2 MM has Grown at 100%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at -9.33 %

EPS(Q)

Lowest at JPY -12.5

Here's what is working for Chofu Seisakusho Co., Ltd.

Net Profit

At JPY 1,075 MM has Grown at 209.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 8.19%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.18% (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 Chofu Seisakusho Co., Ltd.

Interest

At JPY 2 MM has Grown at 100%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -12.5

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -9.33 %

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

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)