Daitron Co., Ltd. (7609) 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

Daitron Co., Ltd.

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Why is Daitron Co., Ltd. ?

Strong Long Term Fundamental Strength with a 23.87% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 39.31% signifying high profitability per unit of total capital (equity and debt)

With a growth in Net Profit of 20.9%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
NET SALES(Q) At JPY 30,338 MM has Grown at 50.97%
ROCE(HY) Highest at 16.68%
RAW MATERIAL COST(Y) Fallen by -100.64% (YoY)

With ROE of 13.91%, it has a very attractive valuation with a 1.76 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 -1.19%, its profits have risen by 12.9%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Daitron Co., Ltd. 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 Daitron Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daitron Co., Ltd.

-1.19%

0.33

62.31%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.43%

EBIT Growth (5y)

23.87%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

2.67

Tax Ratio

30.16%

Dividend Payout Ratio

40.89%

Pledged Shares

Institutional Holding

ROCE (avg)

39.31%

ROE (avg)

13.26%

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

1.76

EV to EBIT

5.88

EV to EBITDA

5.51

EV to Capital Employed

2.93

EV to Sales

0.40

PEG Ratio

Dividend Yield

ROCE (Latest)

49.79%

ROE (Latest)

13.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

22What is working for the Company

NET SALES(Q)

At JPY 30,338 MM has Grown at 50.97%

ROCE(HY)

Highest at 16.68%

RAW MATERIAL COST(Y)

Fallen by -100.64% (YoY

CASH AND EQV(HY)

Highest at JPY 41,335.88 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.91 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.11 times

OPERATING PROFIT(Q)

Highest at JPY 2,582 MM

PRE-TAX PROFIT(Q)

Highest at JPY 2,531 MM

NET PROFIT(Q)

Highest at JPY 1,740 MM

EPS(Q)

Highest at JPY 82.6

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Daitron Co., Ltd.

Net Sales

At JPY 30,338 MM has Grown at 50.97%

over average net sales of the previous four periods of JPY 20,095.87 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,582 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 2,531 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 1,740 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 82.6

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 41,335.88 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 6.91 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.11 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 -100.64% (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