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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Densan Co., Ltd.

Photosynth, Inc.

Applied Technology Co., Ltd.

Japan Process Development Co., Ltd.

Asahi Intelligence Service Co., Ltd.

PCI Holdings, Inc.

Daiko Denshi Tsushin, Ltd.

Cyber Com Co., Ltd.

Jimoty, Inc.

SAKURA KCS Corp.

DLE, Inc.

Why is Daiko Denshi Tsushin, Ltd. ?

High Management Efficiency with a high ROE of 11.20%

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 0.70% over the last 5 years

Negative results in Jun 25

PRE-TAX PROFIT(Q) At JPY -147.04 MM has Fallen at -144.94%
NET PROFIT(Q) At JPY -130.64 MM has Fallen at -165.06%
ROCE(HY) Lowest at 11.44%

With ROE of 13.40%, it has a very attractive valuation with a 1.13 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 20.95%, its profits have fallen by -11.5%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

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.

21.86%

0.75

31.43%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.70%

EBIT Growth (5y)

2.99%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

3.13

Tax Ratio

31.98%

Dividend Payout Ratio

24.64%

Pledged Shares

Institutional Holding

ROCE (avg)

44.80%

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

1.13

EV to EBIT

2.48

EV to EBITDA

2.20

EV to Capital Employed

1.37

EV to Sales

0.14

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

55.10%

ROE (Latest)

13.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 21,984.33 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 21.77%

-25What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -147.04 MM has Fallen at -144.94%

NET PROFIT(Q)

At JPY -130.64 MM has Fallen at -165.06%

ROCE(HY)

Lowest at 11.44%

NET SALES(Q)

Lowest at JPY 9,085.86 MM

INTEREST(Q)

Highest at JPY 7.52 MM

OPERATING PROFIT(Q)

Lowest at JPY -72.52 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.8 %

EPS(Q)

Lowest at JPY -9.84

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

Cash and Eqv

Highest at JPY 21,984.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 21.77%

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 79.2 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 Daiko Denshi Tsushin, Ltd.

Pre-Tax Profit

At JPY -147.04 MM has Fallen at -144.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -130.64 MM has Fallen at -165.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 7.52 MM has Grown at 22.82%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 9,085.86 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 7.52 MM

in the last five periods and Increased by 22.82% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -72.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -0.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -147.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -130.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -9.84

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)