Daiko Denshi Tsushin, Ltd. (8023) 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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Daiko Denshi Tsushin, Ltd.

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Why is Daiko Denshi Tsushin, Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 11.20%

Healthy long term growth as Operating profit has grown by an annual rate 20.42%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 11.54%, it has a very attractive valuation with a 0.97 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 -10.10%, its profits have fallen by -9.8%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Daiko Denshi Tsushin, Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Daiko Denshi Tsushin, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daiko Denshi Tsushin, Ltd.

-10.1%

0.81

29.35%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.31%

EBIT Growth (5y)

20.42%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

3.03

Tax Ratio

33.53%

Dividend Payout Ratio

31.58%

Pledged Shares

Institutional Holding

ROCE (avg)

47.32%

ROE (avg)

11.20%

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

0.97

EV to EBIT

2.08

EV to EBITDA

1.81

EV to Capital Employed

0.93

EV to Sales

0.11

PEG Ratio

Dividend Yield

ROCE (Latest)

44.68%

ROE (Latest)

11.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 39.12 times

PRE-TAX PROFIT(Q)

Highest at JPY 1,456.83 MM

NET PROFIT(Q)

Highest at JPY 1,026.75 MM

-14What is not working for the Company

ROCE(HY)

Lowest at 10.92%

DEBT-EQUITY RATIO (HY)

Highest at -57.5 %

INTEREST(Q)

Highest at JPY 8.14 MM

Here's what is working for Daiko Denshi Tsushin, Ltd.

Pre-Tax Profit

Highest at JPY 1,456.83 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 1,026.75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 39.12 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Daiko Denshi Tsushin, Ltd.

Interest

At JPY 8.14 MM has Grown at 22.88%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 8.14 MM

in the last five periods and Increased by 22.88% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -57.5 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at JPY 0.35 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income