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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Ryosan Co., Ltd.

Why is Daitron Co., Ltd. ?

Strong Long Term Fundamental Strength with a 13.64% 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 54.89%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 2 consecutive quarters
DEBT-EQUITY RATIO (HY) Lowest at -60 %
CASH AND EQV(HY) Highest at JPY 40,862 MM
INVENTORY TURNOVER RATIO(HY) Highest at 6.34 times

With ROE of 14.99%, it has a very attractive valuation with a 1.33 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 70.09%, its profits have risen by 38.8% ; the PEG ratio of the company is 0.2

Market Beating performance in long term as well as near term

Along with generating 70.09% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

70.09%

-0.13

58.87%

Japan Nikkei 225

41.2%

1.45

28.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.87%

EBIT Growth (5y)

13.64%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

2.99

Tax Ratio

30.16%

Dividend Payout Ratio

39.28%

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

1.33

EV to EBIT

3.38

EV to EBITDA

3.16

EV to Capital Employed

1.86

EV to Sales

0.23

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

54.91%

ROE (Latest)

14.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

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

7What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -60 %

CASH AND EQV(HY)

Highest at JPY 40,862 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.34 times

DIVIDEND PER SHARE(HY)

Highest at JPY 3.7

NET SALES(Q)

Highest at JPY 30,340.25 MM

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 6.44% (YoY

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

Debt-Equity Ratio

Lowest at -60 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at JPY 30,340.25 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 30,340.25 MM has Grown at 21.66%

over average net sales of the previous four periods of JPY 24,938.94 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 40,862 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 6.34 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 3.7

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 126.66 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 Daitron Co., Ltd.

Raw Material Cost

Grown by 6.44% (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