Daiwa Motor Transportation Co., Ltd. (9082) 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

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Daiwa Motor Transportation Co., Ltd.

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Azuma Shipping Co., Ltd.

AGP Corp.

Hiroshima Electric Railway Co., Ltd.

Subaru Enterprise Co., Ltd.

Why is Daiwa Motor Transportation Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.11%

The company has been able to generate a Return on Capital Employed (avg) of 0.11% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.51% and Operating profit at -189.62% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 0.11% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.51% and Operating profit at -189.62% over the last 5 years

With a growth in Operating Profit of 10.57%, the company declared Very Positive results in Dec 25

ROCE(HY) Highest at 2.62%
RAW MATERIAL COST(Y) Fallen by -22.88% (YoY)
NET SALES(Q) Highest at JPY 5,179 MM

With ROCE of -0.22%, it has a expensive valuation with a 0.72 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 55.31%, its profits have risen by 113.6% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daiwa Motor Transportation Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is Daiwa Motor Transportation Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Daiwa Motor Transportation Co., Ltd.

55.31%

1.00

81.79%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.51%

EBIT Growth (5y)

-189.62%

EBIT to Interest (avg)

-7.94

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.87

Sales to Capital Employed (avg)

0.82

Tax Ratio

54.01%

Dividend Payout Ratio

27.03%

Pledged Shares

Institutional Holding

ROCE (avg)

0.11%

ROE (avg)

2.90%

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

0.47

EV to EBIT

-331.95

EV to EBITDA

15.22

EV to Capital Employed

0.72

EV to Sales

0.65

PEG Ratio

0.59

Dividend Yield

0.06%

ROCE (Latest)

-0.22%

ROE (Latest)

0.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly 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

17What is working for the Company

ROCE(HY)

Highest at 2.62%

RAW MATERIAL COST(Y)

Fallen by -22.88% (YoY

NET SALES(Q)

Highest at JPY 5,179 MM

OPERATING PROFIT(Q)

Highest at JPY 473 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.13 %

PRE-TAX PROFIT(Q)

Highest at JPY 246 MM

NET PROFIT(Q)

Highest at JPY 174.95 MM

-9What is not working for the Company

INTEREST(HY)

At JPY 126 MM has Grown at 29.9%

DEBT-EQUITY RATIO (HY)

Highest at 87.13 %

Here's what is working for Daiwa Motor Transportation Co., Ltd.

Net Sales

Highest at JPY 5,179 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 473 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 246 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 174.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -22.88% (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

Here's what is not working for Daiwa Motor Transportation Co., Ltd.

Interest

At JPY 126 MM has Grown at 29.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 87.13 %

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