Daido Signal Co., Ltd.

  • Market Cap: Small Cap
  • Industry: IT - Hardware
  • ISIN: JP3490600008
JPY
796.00
-10 (-1.24%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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.
Hochiki Corp.
Future Innovation Group, Inc.
The Nippon Signal Co., Ltd.
SECURE, Inc. (Japan)
Nohmi Bosai Ltd.
Daido Signal Co., Ltd.
Fenwal Controls of Japan, Ltd.
FTGroup Co. Ltd.
Aiphone Co., Ltd.
Terilogy Holdings Co., Ltd.

Why is Daido Signal Co., Ltd. ?

1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 21.18
2
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
3
With a growth in Operating Profit of 287.58%, the company declared Very Positive results in Mar 26
  • RAW MATERIAL COST(Y) Fallen by -12.32% (YoY)
  • INVENTORY TURNOVER RATIO(HY) Highest at 1.52 times
  • DIVIDEND PER SHARE(HY) Highest at JPY 2.04
4
With ROE of 5.16%, it has a expensive 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 57.94%, its profits have fallen by -30.7%
5
Underperformed the market in the last 1 year
  • The stock has generated a return of 57.94% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Daido Signal Co., Ltd. should be less than 10%
  2. 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, Low Return

Absolute
Risk Adjusted
Volatility
Daido Signal Co., Ltd.
57.94%
1.32
38.52%
Japan Nikkei 225
85.83%
3.09
27.80%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
21.18
Debt to EBITDA (avg)
0.58
Net Debt to Equity (avg)
0.11
Sales to Capital Employed (avg)
0.73
Tax Ratio
27.67%
Dividend Payout Ratio
15.68%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.72%
ROE (avg)
4.51%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
0.56
EV to EBIT
11.76
EV to EBITDA
8.88
EV to Capital Employed
0.61
EV to Sales
0.77
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.19%
ROE (Latest)
5.16%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company
RAW MATERIAL COST(Y)

Fallen by -12.32% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.52 times

DIVIDEND PER SHARE(HY)

Highest at JPY 2.04

NET SALES(Q)

Highest at JPY 9,157.5 MM

OPERATING PROFIT(Q)

Highest at JPY 963.72 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,081.08 MM

NET PROFIT(Q)

Highest at JPY 728.76 MM

EPS(Q)

Highest at JPY 45.9

-11What is not working for the Company
INTEREST(Q)

Highest at JPY 25.7 MM

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

Pre-Tax Profit
At JPY 1,081.08 MM has Grown at 461.95%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit
At JPY 728.76 MM has Grown at 178.63%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales
Highest at JPY 9,157.5 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Net Sales
At JPY 9,157.5 MM has Grown at 28.77%
Year on Year (YoY)
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit
Highest at JPY 963.72 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit
Highest at JPY 1,081.08 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit
Highest at JPY 728.76 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS
Highest at JPY 45.9
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio
Highest at 1.52 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share
Highest at JPY 2.04
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost
Fallen by -12.32% (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 Daido Signal Co., Ltd.

Interest
At JPY 25.7 MM has Grown at 26.58%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest
Highest at JPY 25.7 MM
in the last five periods and Increased by 26.58% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)