CTI Engineering Co., Ltd. (9621) 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

Chiyoda Corp.

Sanki Engineering Co., Ltd.

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Shinnihon Corp.

Yurtec Corp.

RAIZNEXT Corp.

Toenec Corp.

CTI Engineering Co., Ltd.

Taihei Dengyo Kaisha, Ltd.

Sumitomo Mitsui Construction Co., Ltd.

Daiho Corp.

Why is CTI Engineering Co., Ltd. ?

High Management Efficiency with a high ROE of 13.20%

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

Healthy long term growth as Net Sales has grown by an annual rate of 9.43% and Operating profit at 16.62%

The company has declared Negative results for the last 4 consecutive quarters

DEBT-EQUITY RATIO (HY) Highest at -15.82 %
DEBTORS TURNOVER RATIO(HY) Lowest at 2.43 times
INTEREST(Q) Highest at JPY 32 MM

With ROE of 10.11%, it has a very attractive valuation with a 1.20 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 28.85%, its profits have fallen by -31.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CTI Engineering Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is CTI Engineering Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

CTI Engineering Co., Ltd.

28.85%

0.85

28.09%

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)

9.43%

EBIT Growth (5y)

16.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.58

Tax Ratio

32.32%

Dividend Payout Ratio

30.85%

Pledged Shares

Institutional Holding

ROCE (avg)

24.13%

ROE (avg)

13.20%

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

1.20

EV to EBIT

7.45

EV to EBITDA

6.10

EV to Capital Employed

1.22

EV to Sales

0.69

PEG Ratio

Dividend Yield

ROCE (Latest)

16.39%

ROE (Latest)

10.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.53% (YoY

NET SALES(Q)

At JPY 27,768 MM has Grown at 12.48%

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -15.82 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.43 times

INTEREST(Q)

Highest at JPY 32 MM

Here's what is working for CTI Engineering Co., Ltd.

Net Sales

At JPY 27,768 MM has Grown at 12.48%

over average net sales of the previous four periods of JPY 24,687.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -4.53% (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 626 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for CTI Engineering Co., Ltd.

Interest

At JPY 32 MM has Grown at 52.38%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 32 MM

in the last five periods and Increased by 52.38% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -15.82 %

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

Debtors Turnover Ratio

Lowest at 2.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio