Daishinku Corp. (6962) 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

Kanematsu Corp.

Sumida Corp.

Koa Corp.

SAMCO, Inc.

Canon Electronics, Inc.

Kohoku Kogyo Co. Ltd.

Nihon Dempa Kogyo Co., Ltd.

Shindengen Electric Manufacturing Co. Ltd.

Daishinku Corp.

Mimasu Semiconductor Industry Co., Ltd.

Cosel Co., Ltd.

Why is Daishinku Corp. ?

Healthy long term growth as Operating profit has grown by an annual rate 26.93%

Negative results in Jun 25

INTEREST(HY) At JPY 176.12 MM has Grown at 19.35%
PRE-TAX PROFIT(Q) At JPY -541.36 MM has Fallen at -230.09%
NET PROFIT(Q) At JPY -439.46 MM has Fallen at -635.94%

With ROCE of 1.77%, it has a very attractive valuation with a 0.65 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 4.47%, its profits have fallen by -66.2%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 4.47% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daishinku Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Daishinku Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daishinku Corp.

3.31%

-0.57

33.89%

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)

5.26%

EBIT Growth (5y)

26.93%

EBIT to Interest (avg)

17.62

Debt to EBITDA (avg)

1.87

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.55

Tax Ratio

39.38%

Dividend Payout Ratio

315.78%

Pledged Shares

Institutional Holding

ROCE (avg)

6.53%

ROE (avg)

8.54%

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

0.51

EV to EBIT

36.54

EV to EBITDA

6.72

EV to Capital Employed

0.65

EV to Sales

0.87

PEG Ratio

Dividend Yield

0.10%

ROCE (Latest)

1.77%

ROE (Latest)

2.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

2What is working for the Company

NET PROFIT(9M)

Higher at JPY 387.04 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.92%

-24What is not working for the Company

INTEREST(HY)

At JPY 176.12 MM has Grown at 19.35%

PRE-TAX PROFIT(Q)

At JPY -541.36 MM has Fallen at -230.09%

NET PROFIT(Q)

At JPY -439.46 MM has Fallen at -635.94%

ROCE(HY)

Lowest at -1.41%

RAW MATERIAL COST(Y)

Grown by 9.27% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 48.03 %

Here's what is working for Daishinku Corp.

Debtors Turnover Ratio

Highest at 3.92%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Daishinku Corp.

Pre-Tax Profit

At JPY -541.36 MM has Fallen at -230.09%

over average net sales of the previous four periods of JPY 416.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -439.46 MM has Fallen at -635.94%

over average net sales of the previous four periods of JPY 82 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 176.12 MM has Grown at 19.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 48.03 %

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

Raw Material Cost

Grown by 9.27% (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