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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sanshin Electronics Co., Ltd.

Daitron Co., Ltd.

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Shinko Shoji Co., Ltd.

T-Gaia Corp.

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 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 74.61%, its profits have risen by 38.8% ; the PEG ratio of the company is 0.2

Market Beating Performance

The stock has generated a return of 74.61% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

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?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Daitron Co., Ltd.

74.68%

1.81

31.71%

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)

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)

3.02

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

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

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

13What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -58.56 %

DIVIDEND PER SHARE(HY)

Highest at JPY 3.79

INTEREST COVERAGE RATIO(Q)

Highest at 39,032.67

RAW MATERIAL COST(Y)

Fallen by -8.32% (YoY

NET PROFIT(9M)

Higher at JPY 4,361.92 MM

CASH AND EQV(HY)

Highest at JPY 38,910.61 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.19%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.79%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Interest Coverage Ratio

Highest at 39,032.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at -58.56 % 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

Dividend per share

Highest at JPY 3.79 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

At JPY 4,361.92 MM has Grown at 62.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 38,910.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 6.19%

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 3.79%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at JPY 4,361.92 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -8.32% (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