Denyo Co., Ltd. (6517) 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

Tsugami Corp.

ANEST IWATA Corp.

Tsukishima Holdings Co., Ltd.

Torishima Pump Mfg. Co., Ltd.

Denyo Co., Ltd.

Sinko Industries Ltd.

Komori Corp.

Shima Seiki Mfg. Ltd.

Sintokogio Ltd.

Nomura Micro Science Co., Ltd.

Hosokawa Micron Corp.

Why is Denyo Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 87.46

Poor long term growth as Operating profit has grown by an annual rate 6.45% of over the last 5 years

With a growth in Net Profit of 30.88%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
DIVIDEND PER SHARE(HY) Highest at JPY 3.01
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
NET SALES(Q) Highest at JPY 20,958 MM

With ROE of 6.77%, it has a fair valuation with a 1.03 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 29.80%, its profits have fallen by -18.9%
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 29.80% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Denyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Denyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Denyo Co., Ltd.

29.8%

1.06

29.69%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.56%

EBIT Growth (5y)

6.45%

EBIT to Interest (avg)

87.46

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.26

Sales to Capital Employed (avg)

0.91

Tax Ratio

28.32%

Dividend Payout Ratio

27.37%

Pledged Shares

Institutional Holding

ROCE (avg)

12.07%

ROE (avg)

6.34%

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

1.03

EV to EBIT

9.05

EV to EBITDA

7.11

EV to Capital Employed

1.04

EV to Sales

0.90

PEG Ratio

Dividend Yield

ROCE (Latest)

11.52%

ROE (Latest)

6.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

11What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 3.01

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

NET SALES(Q)

Highest at JPY 20,958 MM

OPERATING PROFIT(Q)

Highest at JPY 3,464 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.53 %

PRE-TAX PROFIT(Q)

Highest at JPY 3,158 MM

NET PROFIT(Q)

Highest at JPY 2,094 MM

EPS(Q)

Highest at JPY 103.06

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 7.15% (YoY

CASH AND EQV(HY)

Lowest at JPY 44,685 MM

DEBT-EQUITY RATIO (HY)

Highest at -23.13 %

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

Dividend per share

Highest at JPY 3.01 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 20,958 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 3,464 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 16.53 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 3,158 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 2,094 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 103.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 505 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 Denyo Co., Ltd.

Cash and Eqv

Lowest at JPY 44,685 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -23.13 %

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

Raw Material Cost

Grown by 7.15% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales