Denkyo Group Holdings Co. Ltd. (8144) 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

Nexyz.Group Corp.

Denkyo Group Holdings Co. Ltd.

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KITAKEI CO., LTD.

Kimura Co., Ltd.

TORQ, Inc.

A&A Material Corp.

Harima-Kyowa Co., Ltd.

KUWAZAWA Holdings Corp.

Daimaru Enawin Co., Ltd.

Green Cross Co., Ltd.

Why is Denkyo Group Holdings Co. Ltd. ?

Poor Management Efficiency with a low ROE of 1.93%

The company has been able to generate a Return on Equity (avg) of 1.93% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 36.03

Poor long term growth as Operating profit has grown by an annual rate -1.41% of over the last 5 years

The company declared positive results in Mar'25 after flat results in Dec'24

NET PROFIT(HY) Higher at JPY -69 MM
RAW MATERIAL COST(Y) Fallen by -2.7% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at -13.23 %

With ROE of 1.47%, it has a very attractive valuation with a 0.30 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 3.90%, its profits have risen by 296.4% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 3.90% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Denkyo Group Holdings Co. Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Denkyo Group Holdings Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Denkyo Group Holdings Co. Ltd.

4.6%

-0.31

16.89%

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)

1.04%

EBIT Growth (5y)

-1.41%

EBIT to Interest (avg)

36.03

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

1.75

Tax Ratio

38.18%

Dividend Payout Ratio

57.54%

Pledged Shares

Institutional Holding

ROCE (avg)

1.80%

ROE (avg)

1.93%

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

0.30

EV to EBIT

37.98

EV to EBITDA

9.37

EV to Capital Employed

0.18

EV to Sales

0.08

PEG Ratio

0.07

Dividend Yield

0.04%

ROCE (Latest)

0.48%

ROE (Latest)

1.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

12What is working for the Company

NET PROFIT(HY)

Higher at JPY -69 MM

RAW MATERIAL COST(Y)

Fallen by -2.7% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -13.23 %

DEBTORS TURNOVER RATIO(HY)

Highest at 6.88%

-10What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -77 MM has Fallen at -130.31%

NET PROFIT(Q)

At JPY -189 MM has Fallen at -261.54%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.11%

CASH AND EQV(HY)

Lowest at JPY 10,025 MM

NET SALES(Q)

Lowest at JPY 12,370 MM

Here's what is working for Denkyo Group Holdings Co. Ltd.

Debt-Equity Ratio

Lowest at -13.23 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 6.88%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.7% (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 Denkyo Group Holdings Co. Ltd.

Pre-Tax Profit

At JPY -77 MM has Fallen at -130.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -189 MM has Fallen at -261.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 7.11% 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

Net Sales

Lowest at JPY 12,370 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 10,025 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents