Daiwa Securities Group, Inc. (8601) 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

Okasan Securities Group, Inc.

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Tokai Tokyo Financial Holdings, Inc.

Japan Exchange Group, Inc.

GMO Financial Holdings, Inc.

Japan Securities Finance Co., Ltd.

Nomura Holdings, Inc.

Daiwa Securities Group, Inc.

Aozora Bank Ltd.

Nihon M&A Center Holdings Inc.

Financial Partners Group Co., Ltd.

Why is Daiwa Securities Group, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.73%

Flat results in Mar 26

INTEREST(HY) At JPY 2,033 MM has Grown at 15.77%
DIVIDEND PAYOUT RATIO(Y) Lowest at 41.64%
DEBT-EQUITY RATIO (HY) Highest at -695.13 %

With ROE of 9.64%, it has a very attractive valuation with a 1.38 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 60.10%, its profits have risen by 27% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

The stock has generated a return of 60.10% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daiwa Securities Group, Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

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

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

Is Daiwa Securities Group, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Daiwa Securities Group, Inc.

60.1%

1258.84

27.98%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.00%

EBIT Growth (5y)

19.19%

EBIT to Interest (avg)

86.47

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

24.62%

Dividend Payout Ratio

51.13%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

ROE (avg)

7.73%

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

1.38

EV to EBIT

-108.14

EV to EBITDA

-85.02

EV to Capital Employed

0.97

EV to Sales

-13.25

PEG Ratio

0.54

Dividend Yield

ROCE (Latest)

-0.89%

ROE (Latest)

9.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

8What is working for the Company

ROCE(HY)

Highest at 10.26%

RAW MATERIAL COST(Y)

Fallen by -7.29% (YoY

NET SALES(Q)

Highest at JPY 398,668 MM

PRE-TAX PROFIT(Q)

Highest at JPY 76,736 MM

NET PROFIT(Q)

Highest at JPY 52,006.38 MM

EPS(Q)

Highest at JPY 35.35

-10What is not working for the Company

INTEREST(HY)

At JPY 2,033 MM has Grown at 15.77%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 41.64%

DEBT-EQUITY RATIO (HY)

Highest at -695.13 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.44 times

Here's what is working for Daiwa Securities Group, Inc.

Net Sales

Highest at JPY 398,668 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 398,668 MM has Grown at 11.97%

over average net sales of the previous four periods of JPY 356,045.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 76,736 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 52,006.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 35.35

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -7.29% (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 Securities Group, Inc.

Interest

At JPY 2,033 MM has Grown at 15.77%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -695.13 %

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

Debtors Turnover Ratio

Lowest at 0.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 41.64%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)