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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

I'LL Inc.

Systena Corp.

Future Corp.

Zuken, Inc.

DTS Corp.

GMO Internet Group, Inc.

Daikoku Denki Co., Ltd.

Simplex Holdings, Inc.

NEC Networks & System Integration Corp.

Net One Systems Co., Ltd.

Infocom Corp.

Why is Daikoku Denki Co., Ltd. ?

Poor Management Efficiency with a low ROE of 10.81%

The company has been able to generate a Return on Equity (avg) of 10.81% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.81%

Poor long term growth as Net Sales has grown by an annual rate of 18.33% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 10.81% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 18.33% over the last 5 years

Negative results in Jun 26

NET SALES(Q) At JPY 12,360.85 MM has Fallen at -19.38%
ROCE(HY) Lowest at 9.92%
PRE-TAX PROFIT(Q) Fallen at -33.78%

With ROE of 14.03%, it has a very attractive valuation with a 0.61 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 -1.01%, its profits have fallen by -17.3%

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.

-1.13%

-1.57

23.95%

Japan Nikkei 225

57.85%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.33%

EBIT Growth (5y)

137.92%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

1.22

Tax Ratio

36.08%

Dividend Payout Ratio

25.28%

Pledged Shares

Institutional Holding

ROCE (avg)

32.81%

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

0.61

EV to EBIT

1.21

EV to EBITDA

1.03

EV to Capital Employed

0.39

EV to Sales

0.23

PEG Ratio

Dividend Yield

ROCE (Latest)

32.20%

ROE (Latest)

14.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.04% (YoY

CASH AND EQV(HY)

Highest at JPY 39,032.9 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.08 times

-15What is not working for the Company

NET SALES(Q)

At JPY 12,360.85 MM has Fallen at -19.38%

ROCE(HY)

Lowest at 9.92%

PRE-TAX PROFIT(Q)

Fallen at -33.78%

NET PROFIT(Q)

Fallen at -37.32%

Here's what is working for Daikoku Denki Co., Ltd.

Cash and Eqv

Highest at JPY 39,032.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 7.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 503.48 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 Daikoku Denki Co., Ltd.

Net Sales

At JPY 12,360.85 MM has Fallen at -19.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

Fallen at -33.78%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -37.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Non Operating Income

Highest at JPY 0.02 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income