Daiken Medical Co., Ltd. (7775) 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

WIN-Partners Co., Ltd.

Ci Medical Co., Ltd.

Vital KSK Holdings, Inc.

Daiken Medical Co., Ltd.

Arata Corp.

AS ONE Corp.

Nagaileben Co., Ltd.

Medius Holdings Co., Ltd.

HOKUYAKU TAKEYAMA Holdings, Inc.

Nipro Corp.

J Frontier Co., Ltd.

Why is Daiken Medical Co., Ltd. ?

High Management Efficiency with a high ROE of 12.69%

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

Poor long term growth as Net Sales has grown by an annual rate of 3.15% and Operating profit at 4.83% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 5.21 MM has Grown at 9.28%
ROCE(HY) Lowest at 13.02%
RAW MATERIAL COST(Y) Grown by 6.43% (YoY)

With ROE of 14.56%, it has a very attractive valuation with a 1.87 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 -7.37%, its profits have risen by 10.3% ; the PEG ratio of the company is 1.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.37% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daiken Medical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Daiken Medical Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daiken Medical Co., Ltd.

-7.37%

-1.01

13.56%

Japan Nikkei 225

38.94%

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)

3.15%

EBIT Growth (5y)

4.83%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.04

Tax Ratio

27.23%

Dividend Payout Ratio

60.20%

Pledged Shares

Institutional Holding

ROCE (avg)

18.30%

ROE (avg)

12.69%

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

1.87

EV to EBIT

8.66

EV to EBITDA

7.51

EV to Capital Employed

2.00

EV to Sales

1.32

PEG Ratio

1.25

Dividend Yield

ROCE (Latest)

23.11%

ROE (Latest)

14.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 19,688.67

INVENTORY TURNOVER RATIO(HY)

Highest at 4.56 times

NET SALES(Q)

Highest at JPY 2,823.2 MM

-9What is not working for the Company

INTEREST(HY)

At JPY 5.21 MM has Grown at 9.28%

ROCE(HY)

Lowest at 13.02%

RAW MATERIAL COST(Y)

Grown by 6.43% (YoY

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

Interest Coverage Ratio

Highest at 19,688.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 2,823.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 4.56 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 64.28 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 Medical Co., Ltd.

Interest

At JPY 5.21 MM has Grown at 9.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 6.43% (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