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
- OPERATING CASH FLOW(Y) Highest at JPY 17,084 MM
- RAW MATERIAL COST(Y) Fallen by -4.1% (YoY)
- DEBTORS TURNOVER RATIO(HY) Highest at 6.13%
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 18.93%, 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.
18.93%
0.40
24.56%
Japan Nikkei 225
28.54%
1.11
25.75%
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)
1.33
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
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 17,084 MM
RAW MATERIAL COST(Y)
Fallen by -4.1% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.13%
-10What is not working for the Company
INTEREST(HY)
At JPY 2 MM has Grown at 100%
INTEREST COVERAGE RATIO(Q)
Lowest at 382,100
Here's what is working for Elecom Co., Ltd.
Operating Cash Flow
Highest at JPY 17,084 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Debtors Turnover Ratio
Highest at 6.13%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -4.1% (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 Elecom Co., Ltd.
Interest
At JPY 2 MM has Grown at 100%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 382,100
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest






