Daiichi Jitsugyo Co., Ltd. (8059) 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

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Daiichi Jitsugyo Co., Ltd.

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Why is Daiichi Jitsugyo Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 9.79%

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

Negative results in Jun 26

INTEREST(HY) At JPY 26 MM has Grown at 36.84%
ROCE(HY) Lowest at 11.56%
INTEREST COVERAGE RATIO(Q) Lowest at 10,653.85

With ROE of 11.42%, it has a very attractive valuation with a 1.14 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 26.63%, its profits have fallen by -5.1%

Underperformed the market in the last 1 year

The stock has generated a return of 26.63% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daiichi Jitsugyo Co., Ltd. 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 Daiichi Jitsugyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daiichi Jitsugyo Co., Ltd.

25.99%

1.71

31.11%

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)

9.15%

EBIT Growth (5y)

17.93%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

2.54

Tax Ratio

31.77%

Dividend Payout Ratio

40.10%

Pledged Shares

Institutional Holding

ROCE (avg)

23.05%

ROE (avg)

9.79%

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

1.14

EV to EBIT

3.98

EV to EBITDA

3.65

EV to Capital Employed

1.28

EV to Sales

0.25

PEG Ratio

Dividend Yield

ROCE (Latest)

32.26%

ROE (Latest)

11.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 16,686 MM

RAW MATERIAL COST(Y)

Fallen by -5.57% (YoY

CASH AND EQV(HY)

Highest at JPY 110,416 MM

DEBT-EQUITY RATIO (HY)

Lowest at -54.63 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.17 times

-20What is not working for the Company

INTEREST(HY)

At JPY 26 MM has Grown at 36.84%

ROCE(HY)

Lowest at 11.56%

INTEREST COVERAGE RATIO(Q)

Lowest at 10,653.85

NET SALES(Q)

Lowest at JPY 41,232 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,385 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.36 %

Here's what is working for Daiichi Jitsugyo Co., Ltd.

Operating Cash Flow

Highest at JPY 16,686 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 110,416 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -54.63 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.17 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 -5.57% (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 Daiichi Jitsugyo Co., Ltd.

Interest

At JPY 26 MM has Grown at 36.84%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 41,232 MM has Fallen at -16.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 10,653.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 41,232 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 1,385 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales