Eagle Industry Co. Ltd. (6486) 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

Enplas Corp.

Fuji Seal International, Inc.

FUKUSHIMA GALILEI CO., LTD.

Max Co., Ltd.

KITZ Corp.

Krosaki Harima Corp.

Eagle Industry Co. Ltd.

Noritake Co., Ltd.

METAWATER Co., Ltd.

Towa Corp.

Shibaura Machine Co., Ltd.

Why is Eagle Industry Co. Ltd. ?

Weak Long Term Fundamental Strength with a 18.08% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 6.24% and Operating profit at 18.08% over the last 5 years

Flat results in Mar 26

INVENTORY TURNOVER RATIO(HY) Lowest at 3.46 times
INTEREST(Q) Highest at JPY 191 MM

With ROE of 8.79%, it has a very attractive valuation with a 1.16 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 24.03%, its profits have risen by 14.3% ; the PEG ratio of the company is 0.9
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 24.03% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Eagle Industry 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 Eagle Industry Co. Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Eagle Industry Co. Ltd.

-100.0%

2.41

26.64%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.24%

EBIT Growth (5y)

18.08%

EBIT to Interest (avg)

18.97

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.08

Tax Ratio

26.74%

Dividend Payout Ratio

57.68%

Pledged Shares

Institutional Holding

ROCE (avg)

7.86%

ROE (avg)

8.10%

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

1.16

EV to EBIT

13.33

EV to EBITDA

6.95

EV to Capital Employed

1.15

EV to Sales

0.89

PEG Ratio

0.92

Dividend Yield

ROCE (Latest)

8.60%

ROE (Latest)

8.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

12What is working for the Company

NET PROFIT(HY)

At JPY 5,284.49 MM has Grown at 97.77%

ROCE(HY)

Highest at 7.96%

RAW MATERIAL COST(Y)

Fallen by -18.46% (YoY

CASH AND EQV(HY)

Highest at JPY 67,656 MM

DEBT-EQUITY RATIO (HY)

Lowest at 4.44 %

DIVIDEND PER SHARE(HY)

Highest at JPY 3.81

-12What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.46 times

INTEREST(Q)

Highest at JPY 191 MM

Here's what is working for Eagle Industry Co. Ltd.

Net Profit

At JPY 5,284.49 MM has Grown at 97.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 67,656 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 4.44 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at JPY 3.81

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -18.46% (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 Eagle Industry Co. Ltd.

Interest

At JPY 191 MM has Grown at 18.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 191 MM

in the last five periods and Increased by 18.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio