Daiki Axis Co., Ltd. (4245) 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

Punch Industry Co., Ltd.

Kanefusa Corp.

Nakakita Seisakusho Co., Ltd.

Yamada Corp.

OVAL Corp.

Daiki Axis Co., Ltd.

Fujimak Corp.

Yuken Kogyo Co. Ltd.

Mutoh Holdings Co., Ltd.

A-One Seimitsu, Inc.

Nakanishi Manufacturing Co., Ltd.

Why is Daiki Axis Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 3.88% of over the last 5 years
The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 3.88% of over the last 5 years

Flat results in Mar 26

RAW MATERIAL COST(Y) Grown by 8.04% (YoY)
INTEREST(Q) Highest at JPY 51 MM

With ROCE of 6.58%, it has a very attractive valuation with a 1.01 Enterprise value to Capital Employed

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 -4.41%, its profits have risen by 42.8% ; the PEG ratio of the company is 0.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.41% 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 Daiki Axis Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Daiki Axis Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daiki Axis Co., Ltd.

-4.83%

-0.64

16.38%

Japan Nikkei 225

69.64%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.88%

EBIT Growth (5y)

3.88%

EBIT to Interest (avg)

18.73

Debt to EBITDA (avg)

4.06

Net Debt to Equity (avg)

0.98

Sales to Capital Employed (avg)

1.74

Tax Ratio

60.04%

Dividend Payout Ratio

69.03%

Pledged Shares

Institutional Holding

ROCE (avg)

6.06%

ROE (avg)

6.11%

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

1.03

EV to EBIT

15.42

EV to EBITDA

8.28

EV to Capital Employed

1.01

EV to Sales

0.41

PEG Ratio

0.41

Dividend Yield

ROCE (Latest)

6.58%

ROE (Latest)

5.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly 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

9What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 741 MM has Grown at 122.02%

NET PROFIT(Q)

At JPY 390 MM has Grown at 172.19%

CASH AND EQV(HY)

Highest at JPY 16,713 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 26.42 times

-12What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 8.04% (YoY

INTEREST(Q)

Highest at JPY 51 MM

Here's what is working for Daiki Axis Co., Ltd.

Pre-Tax Profit

At JPY 741 MM has Grown at 122.02%

over average net sales of the previous four periods of JPY 333.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 390 MM has Grown at 172.19%

over average net sales of the previous four periods of JPY 143.28 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 16,713 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 26.42 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 297 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 Daiki Axis Co., Ltd.

Interest

At JPY 51 MM has Grown at 18.6%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 51 MM

in the last five periods and Increased by 18.6% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 8.04% (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