Daikoku Denki Co., Ltd. (6430) 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

Simplex Holdings, Inc.

Systena Corp.

I'LL Inc.

DTS Corp.

Zuken, Inc.

NEC Networks & System Integration Corp.

Future Corp.

GMO Internet Group, Inc.

Daikoku Denki Co., Ltd.

Net One Systems Co., Ltd.

Infocom Corp.

Why is Daikoku Denki Co., Ltd. ?

Strong Long Term Fundamental Strength with a 53.52% CAGR growth in Operating Profits

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

Negative results in Jun 25

NET SALES(Q) At JPY 15,331.81 MM has Fallen at -17.57%
ROCE(HY) Lowest at 13.96%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.64%

With ROE of 18.67%, it has a very attractive valuation with a 0.71 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 -6.53%, its profits have fallen by -1.9%

Below par performance in long term as well as near term

Along with generating -6.53% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daikoku Denki Co., 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 Daikoku Denki Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daikoku Denki Co., Ltd.

-5.14%

-0.81

32.23%

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)

11.77%

EBIT Growth (5y)

53.52%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

1.21

Tax Ratio

32.49%

Dividend Payout Ratio

22.78%

Pledged Shares

Institutional Holding

ROCE (avg)

26.93%

ROE (avg)

10.81%

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

0.71

EV to EBIT

1.24

EV to EBITDA

1.08

EV to Capital Employed

0.53

EV to Sales

0.26

PEG Ratio

Dividend Yield

ROCE (Latest)

43.11%

ROE (Latest)

18.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-28What is not working for the Company

NET SALES(Q)

At JPY 15,331.81 MM has Fallen at -17.57%

ROCE(HY)

Lowest at 13.96%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.64%

INTEREST COVERAGE RATIO(Q)

Lowest at 196,663.9

RAW MATERIAL COST(Y)

Grown by 5.14% (YoY

INTEREST(Q)

Highest at JPY 2.01 MM

PRE-TAX PROFIT(Q)

Fallen at -36.59%

NET PROFIT(Q)

Fallen at -37.03%

Here's what is not working for Daikoku Denki Co., Ltd.

Net Sales

At JPY 15,331.81 MM has Fallen at -17.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 2.01 MM has Grown at 10,484.21%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 196,663.9

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 2.64% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 2.01 MM

in the last five periods and Increased by 10,484.21% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -36.59%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -37.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 5.14% (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