Ebara Corp. (6361) 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

FANUC Corp.

Ebara Corp.

Daifuku Co., Ltd.

MISUMI Group, Inc.

HOSHIZAKI Corp.

YASKAWA Electric Corp.

DISCO Corp.

OMRON Corp.

TOSHIBA Corp.

Toyota Industries Corp.

SUMCO Corp.

Why is Ebara Corp. ?

Strong Long Term Fundamental Strength with a 26.49% CAGR growth in Operating Profits

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 29.08
The company has been able to generate a Return on Capital Employed (avg) of 19.86% signifying high profitability per unit of total capital (equity and debt)

With ROE of 16.17%, it has a very attractive valuation with a 2.22 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 64.25%, its profits have risen by 4.2%

Consistent Returns over the last 3 years

Along with generating 64.25% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Ebara Corp. 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 Ebara Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ebara Corp.

64.25%

336.78

46.13%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.45%

EBIT Growth (5y)

26.49%

EBIT to Interest (avg)

29.08

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.39

Tax Ratio

26.79%

Dividend Payout Ratio

35.57%

Pledged Shares

Institutional Holding

0.35%

ROCE (avg)

19.86%

ROE (avg)

14.71%

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

2.22

EV to EBIT

9.75

EV to EBITDA

7.58

EV to Capital Employed

2.17

EV to Sales

1.18

PEG Ratio

Dividend Yield

ROCE (Latest)

22.30%

ROE (Latest)

16.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 91,400 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 3.71

RAW MATERIAL COST(Y)

Fallen by 1.6% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.89%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.71%

NET SALES(Q)

At JPY 236,118 MM has Grown at 17.64%

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 823.52

INTEREST(Q)

Highest at JPY 4,261 MM

Here's what is working for Ebara Corp.

Operating Cash Flow

Highest at JPY 91,400 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Dividend per share

Highest at JPY 3.71 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

At JPY 236,118 MM has Grown at 17.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 2.89%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.71%

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 1.6% (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 Ebara Corp.

Interest

At JPY 4,261 MM has Grown at 225.02%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 823.52

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 4,261 MM

in the last five periods and Increased by 225.02% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)