CONVUM Ltd. (6265) 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

Nomura Corp.

Sansei Co., Ltd.

Kyoritsu Air Tech, Inc.

CONVUM Ltd.

Tokuden Co., Ltd.

Fuji Seiki Co., Ltd.

Tokyo Kikai Seisakusho, Ltd.

Taihei Machinery Works, Ltd.

Nitcho Corp.

KLASS Corp.

Unozawa-Gumi Iron Works, Ltd.

Why is CONVUM Ltd. ?

Poor Management Efficiency with a low ROE of 5.94%

The company has been able to generate a Return on Equity (avg) of 5.94% 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 -3.21% and Operating profit at 8.58% over the last 5 years

Positive results in Dec 25

INVENTORY TURNOVER RATIO(HY) Highest at 2.76 times
RAW MATERIAL COST(Y) Fallen by 1.93% (YoY)
CASH AND EQV(HY) Highest at JPY 5,889.08 MM

With ROE of 4.44%, it has a very attractive valuation with a 0.58 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 33.66%, its profits have risen by 19.1% ; the PEG ratio of the company is 0.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CONVUM 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 CONVUM Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

CONVUM Ltd.

33.66%

1.21

28.91%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.21%

EBIT Growth (5y)

8.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

0.33

Tax Ratio

28.54%

Dividend Payout Ratio

31.37%

Pledged Shares

Institutional Holding

ROCE (avg)

13.62%

ROE (avg)

5.94%

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

0.58

EV to EBIT

1.84

EV to EBITDA

1.13

EV to Capital Employed

0.19

EV to Sales

0.31

PEG Ratio

0.68

Dividend Yield

ROCE (Latest)

10.26%

ROE (Latest)

4.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bearish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 2.76 times

RAW MATERIAL COST(Y)

Fallen by 1.93% (YoY

CASH AND EQV(HY)

Highest at JPY 5,889.08 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.22 times

NET SALES(Q)

Highest at JPY 526.09 MM

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 0 %

OPERATING PROFIT(Q)

Lowest at JPY 104.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.86 %

PRE-TAX PROFIT(Q)

Lowest at JPY 67.24 MM

Here's what is working for CONVUM Ltd.

Inventory Turnover Ratio

Highest at 2.76 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

Highest at JPY 526.09 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 5,889.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.22 times

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 1.93% (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 CONVUM Ltd.

Operating Profit

Lowest at JPY 104.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 19.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 67.24 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Highest at 0 %

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

Non Operating Income

Highest at JPY 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income