Why is EDION Corp. ?
1
Flat results in Jun 25
- INTEREST(HY) At JPY 286 MM has Grown at 43%
- INTEREST COVERAGE RATIO(Q) Lowest at 5,226.71
- CASH AND EQV(HY) Lowest at JPY 18,976 MM
2
With ROCE of 8.00%, it has a very attractive valuation with a 0.99 Enterprise value to Capital Employed
- 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 13.92%, its profits have risen by 54.3% ; the PEG ratio of the company is 0.3
3
Underperformed the market in the last 1 year
- The stock has generated a return of 13.92% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is EDION Corp. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
EDION Corp.
13.92%
1.58
17.95%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
0.92%
EBIT Growth (5y)
13.75%
EBIT to Interest (avg)
75.56
Debt to EBITDA (avg)
1.33
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
2.61
Tax Ratio
32.82%
Dividend Payout Ratio
34.99%
Pledged Shares
0
Institutional Holding
0.84%
ROCE (avg)
8.75%
ROE (avg)
6.97%
Valuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.98
EV to EBIT
12.34
EV to EBITDA
8.19
EV to Capital Employed
0.99
EV to Sales
0.38
PEG Ratio
0.25
Dividend Yield
NA
ROCE (Latest)
8.00%
ROE (Latest)
7.14%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 30,245 MM
NET PROFIT(9M)
At JPY 8,794.25 MM has Grown at 63.38%
ROCE(HY)
Highest at 6.86%
RAW MATERIAL COST(Y)
Fallen by 0.55% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.09%
-11What is not working for the Company
INTEREST(HY)
At JPY 286 MM has Grown at 43%
INTEREST COVERAGE RATIO(Q)
Lowest at 5,226.71
CASH AND EQV(HY)
Lowest at JPY 18,976 MM
Here's what is working for EDION Corp.
Operating Cash Flow
Highest at JPY 30,245 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Profit
At JPY 8,794.25 MM has Grown at 63.38%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 4.09%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.55% (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 EDION Corp.
Interest
At JPY 286 MM has Grown at 43%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 5,226.71
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Cash and Eqv
Lowest at JPY 18,976 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






