Why is Elecom Co., Ltd. ?
1
High Management Efficiency with a high ROE of 11.90%
2
Company has very low debt and has enough cash to service the debt requirements
3
The company has declared Positive results for the last 3 consecutive quarters
- ROCE(HY) Highest at 19.89%
- RAW MATERIAL COST(Y) Fallen by -0.86% (YoY)
- CASH AND EQV(HY) Highest at JPY 122,105 MM
4
With ROE of 11.26%, it has a very attractive valuation with a 2.02 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 -3.70%, its profits have fallen by -5.6%
How much should you buy?
- Overall Portfolio exposure to Elecom Co., Ltd. should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Elecom Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Elecom Co., Ltd.
-3.7%
0.17
25.44%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
3.17%
EBIT Growth (5y)
-0.86%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.66
Sales to Capital Employed (avg)
1.34
Tax Ratio
28.28%
Dividend Payout Ratio
40.26%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
55.46%
ROE (avg)
11.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
2.02
EV to EBIT
8.35
EV to EBITDA
6.51
EV to Capital Employed
3.99
EV to Sales
0.96
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
47.85%
ROE (Latest)
11.26%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Bullish
Technical Movement
11What is working for the Company
ROCE(HY)
Highest at 19.89%
RAW MATERIAL COST(Y)
Fallen by -0.86% (YoY
CASH AND EQV(HY)
Highest at JPY 122,105 MM
NET SALES(Q)
Highest at JPY 36,437 MM
OPERATING PROFIT(Q)
Highest at JPY 5,519 MM
PRE-TAX PROFIT(Q)
Highest at JPY 5,106 MM
NET PROFIT(Q)
Highest at JPY 4,545.26 MM
EPS(Q)
Highest at JPY 144.99
-5What is not working for the Company
INTEREST(9M)
At JPY 2 MM has Grown at inf%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.7 times
Here's what is working for Elecom Co., Ltd.
Net Sales
Highest at JPY 36,437 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 36,437 MM has Grown at 21.22%
over average net sales of the previous four periods of JPY 30,057.75 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 5,519 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 5,106 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 4,545.26 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 4,545.26 MM has Grown at 78.54%
over average net sales of the previous four periods of JPY 2,545.75 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 144.99
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 122,105 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -0.86% (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
Depreciation
Highest at JPY 1,055 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Elecom Co., Ltd.
Interest
At JPY 2 MM has Grown at inf%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 4.7 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






