CMK Corp. (6958) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hosiden Corp.

Citizen Watch Co., Ltd.

Meiko Electronics Co., Ltd.

Tamura Corp.

Nichicon Corp.

IRISO Electronics Co., Ltd.

Japan Aviation Electronics Industry Ltd.

Taiyo Yuden Co., Ltd.

CMK Corp.

Japan Display, Inc.

MegaChips Corp.

Why is CMK Corp. ?

Poor Management Efficiency with a low ROCE of 3.22%

The company has been able to generate a Return on Capital Employed (avg) of 3.22% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 6.82

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 6.82
The company has been able to generate a Return on Equity (avg) of 3.86% signifying low profitability per unit of shareholders funds

The company declared very negative results in Mar'25 after negative results in Dec'24

INTEREST(HY) At JPY 399 MM has Grown at 126.7%
PRE-TAX PROFIT(Q) At JPY 202 MM has Fallen at -84.94%
NET PROFIT(Q) At JPY 80 MM has Fallen at -91.58%

With ROCE of 3.75%, it has a very attractive valuation with a 0.45 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 18.73%, its profits have fallen by -8.3%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CMK Corp. 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 CMK Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

CMK Corp.

18.73%

-0.37

47.70%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.94%

EBIT Growth (5y)

18.81%

EBIT to Interest (avg)

6.82

Debt to EBITDA (avg)

2.21

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.84

Tax Ratio

26.99%

Dividend Payout Ratio

37.61%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

3.22%

ROE (avg)

3.86%

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

0.30

EV to EBIT

12.00

EV to EBITDA

6.82

EV to Capital Employed

0.45

EV to Sales

0.48

PEG Ratio

Dividend Yield

0.13%

ROCE (Latest)

3.75%

ROE (Latest)

4.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly 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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.47%

-25What is not working for the Company

INTEREST(HY)

At JPY 399 MM has Grown at 126.7%

PRE-TAX PROFIT(Q)

At JPY 202 MM has Fallen at -84.94%

NET PROFIT(Q)

At JPY 80 MM has Fallen at -91.58%

RAW MATERIAL COST(Y)

Grown by 16.54% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 31.45 %

NET SALES(Q)

Lowest at JPY 22,779 MM

Here's what is working for CMK Corp.

Inventory Turnover Ratio

Highest at 4.47%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for CMK Corp.

Interest

At JPY 399 MM has Grown at 126.7%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 202 MM has Fallen at -84.94%

over average net sales of the previous four periods of JPY 1,341.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 80 MM has Fallen at -91.58%

over average net sales of the previous four periods of JPY 950.61 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 22,779 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Debt-Equity Ratio

Highest at 31.45 %

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

Raw Material Cost

Grown by 16.54% (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