Daiken Co., Ltd. (5900) 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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WATT MANN CO., LTD.

Daiken Co., Ltd.

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Taiheiyo Kouhatsu Inc.

Why is Daiken Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.23%

The company has been able to generate a Return on Equity (avg) of 2.23% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.43% over the last 5 years

With ROE of 1.23%, it has a very expensive valuation with a 0.36 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 4.86%, its profits have fallen by -25.1%

Underperformed the market in the last 1 year

The stock has generated a return of 4.86% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Daiken Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daiken Co., Ltd.

-1.75%

0.04

18.45%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.43%

EBIT Growth (5y)

-11.93%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.84

Tax Ratio

28.59%

Dividend Payout Ratio

37.04%

Pledged Shares

Institutional Holding

ROCE (avg)

4.52%

ROE (avg)

2.23%

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

0.36

EV to EBIT

6.40

EV to EBITDA

2.57

EV to Capital Employed

0.16

EV to Sales

0.14

PEG Ratio

Dividend Yield

ROCE (Latest)

2.46%

ROE (Latest)

1.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Bearish

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

11What is working for the Company

NET SALES(Q)

Highest at JPY 3,463.74 MM

OPERATING PROFIT(Q)

Highest at JPY 335.18 MM

PRE-TAX PROFIT(Q)

Highest at JPY 351.41 MM

NET PROFIT(Q)

Highest at JPY 279.43 MM

EPS(Q)

Highest at JPY 53.42

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 37.44%

RAW MATERIAL COST(Y)

Grown by 5.16% (YoY

CASH AND EQV(HY)

Lowest at JPY 6,596.14 MM

Here's what is working for Daiken Co., Ltd.

Net Sales

Highest at JPY 3,463.74 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 335.18 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 351.41 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 279.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 279.43 MM has Grown at 71.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 53.42

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 106.87 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 Daiken Co., Ltd.

Cash and Eqv

Lowest at JPY 6,596.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio

Lowest at 37.44%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 5.16% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales