Daido Signal Co., Ltd. (6743) 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

New Cosmos Electric Co., Ltd.

The Nippon Signal Co., Ltd.

Future Innovation Group, Inc.

Hochiki Corp.

SECURE, Inc. (Japan)

FTGroup Co. Ltd.

Daido Signal Co., Ltd.

Aiphone Co., Ltd.

Nohmi Bosai Ltd.

Terilogy Holdings Co., Ltd.

Fenwal Controls of Japan, Ltd.

Why is Daido Signal Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.51%

The company has been able to generate a Return on Equity (avg) of 4.51% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a -3.37% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.51% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.20% and Operating profit at -3.37% over the last 5 years

With a growth in Operating Profit of 55.09%, the company declared Very Positive results in Jun 26

NET SALES(HY) At JPY 14,832.84 MM has Grown at 21.63%
NET PROFIT(HY) At JPY 1,112.78 MM has Grown at 106.06%
RAW MATERIAL COST(Y) Fallen by -17.61% (YoY)

With ROE of 5.16%, it has a very attractive valuation with a 0.56 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 74.71%, its profits have fallen by -30.7%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daido Signal Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is Daido Signal Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Daido Signal Co., Ltd.

103.62%

1.87

39.63%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.20%

EBIT Growth (5y)

-3.37%

EBIT to Interest (avg)

20.64

Debt to EBITDA (avg)

0.72

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.74

Tax Ratio

29.43%

Dividend Payout Ratio

30.98%

Pledged Shares

Institutional Holding

ROCE (avg)

5.48%

ROE (avg)

4.51%

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

0.56

EV to EBIT

11.74

EV to EBITDA

8.87

EV to Capital Employed

0.61

EV to Sales

0.77

PEG Ratio

Dividend Yield

ROCE (Latest)

5.19%

ROE (Latest)

5.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

10What is working for the Company

NET SALES(HY)

At JPY 14,832.84 MM has Grown at 21.63%

NET PROFIT(HY)

At JPY 1,112.78 MM has Grown at 106.06%

RAW MATERIAL COST(Y)

Fallen by -17.61% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.49 times

PRE-TAX PROFIT(Q)

At JPY 726.34 MM has Grown at 76.03%

-8What is not working for the Company

INTEREST(HY)

At JPY 45.29 MM has Grown at 23.85%

Here's what is working for Daido Signal Co., Ltd.

Net Sales

At JPY 14,832.84 MM has Grown at 21.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

At JPY 1,112.78 MM has Grown at 106.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 726.34 MM has Grown at 76.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Highest at 1.49 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -17.61% (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 146.54 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 Daido Signal Co., Ltd.

Interest

At JPY 45.29 MM has Grown at 23.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)