Daiwa House Industry Co., Ltd. (1925) 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

HASEKO Corp.

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Token Corp.

KATITAS Co., Ltd.

Obayashi Corp.

Daiwa House Industry Co., Ltd.

Sumitomo Forestry Co., Ltd.

Nagawa Co., Ltd.

Nishimatsu Construction Co., Ltd.

Pressance Corp.

Why is Daiwa House Industry Co., Ltd. ?

The company is Net-Debt Free

The company is Net-Debt Free

High Debt company with Weak Long Term Fundamental Strength

Negative results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 103.25 %
INVENTORY TURNOVER RATIO(HY) Lowest at 1.46 times
INTEREST COVERAGE RATIO(Q) Lowest at 1,288.5

With ROCE of 10.11%, it has a very attractive valuation with a 1.03 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 -10.85%, its profits have risen by 4.3% ; the PEG ratio of the company is 2
At the current price, the company has a high dividend yield of 0

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 6.06% over the previous quarter and collectively hold 6.07% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Below par performance in long term as well as near term

Along with generating -10.85% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daiwa House Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

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

Is Daiwa House Industry Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Daiwa House Industry Co., Ltd.

-13.61%

711.67

19.51%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.49%

EBIT Growth (5y)

10.15%

EBIT to Interest (avg)

19.00

Debt to EBITDA (avg)

2.85

Net Debt to Equity (avg)

0.76

Sales to Capital Employed (avg)

1.05

Tax Ratio

33.73%

Dividend Payout Ratio

30.89%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

11.65%

ROE (avg)

12.81%

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

1.05

EV to EBIT

10.15

EV to EBITDA

8.06

EV to Capital Employed

1.03

EV to Sales

1.02

PEG Ratio

1.98

Dividend Yield

ROCE (Latest)

10.11%

ROE (Latest)

12.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.69% (YoY

-15What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 103.25 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.46 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,288.5

INTEREST(Q)

Highest at JPY 13,226 MM

Here's what is working for Daiwa House Industry Co., Ltd.

Raw Material Cost

Fallen by -0.69% (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 39,771 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 Daiwa House Industry Co., Ltd.

Interest Coverage Ratio

Lowest at 1,288.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 103.25 % and Grown

In each half year 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

Inventory Turnover Ratio

Lowest at 1.46 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 13,226 MM

in the last five periods and Increased by 5.34% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)