Elecom Co., Ltd. (6750) 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

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Elecom Co., Ltd.

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Seiko Epson Corp.

Why is Elecom Co., Ltd. ?

High Management Efficiency with a high ROE of 11.92%

Company has very low debt and has enough cash to service the debt requirements

Positive results in Mar 26

ROCE(HY) Highest at 21.16%
DIVIDEND PER SHARE(HY) Highest at JPY 5.47
CASH AND EQV(HY) Highest at JPY 136,433 MM

With ROE of 11.45%, it has a very attractive valuation with a 1.51 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 -1.96%, its profits have risen by 22.3% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

How much should you hold?

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.

-1.96%

0.59

24.42%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.84%

EBIT Growth (5y)

-0.86%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

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

Institutional Holding

ROCE (avg)

55.46%

ROE (avg)

11.92%

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

1.51

EV to EBIT

6.12

EV to EBITDA

4.89

EV to Capital Employed

2.38

EV to Sales

0.72

PEG Ratio

0.59

Dividend Yield

ROCE (Latest)

38.95%

ROE (Latest)

11.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Bullish

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

17What is working for the Company

ROCE(HY)

Highest at 21.16%

DIVIDEND PER SHARE(HY)

Highest at JPY 5.47

CASH AND EQV(HY)

Highest at JPY 136,433 MM

NET SALES(Q)

Highest at JPY 36,863 MM

OPERATING PROFIT(Q)

Highest at JPY 5,880 MM

PRE-TAX PROFIT(Q)

Highest at JPY 5,988 MM

NET PROFIT(Q)

Highest at JPY 4,799.86 MM

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 294,000

DIVIDEND PAYOUT RATIO(Y)

Lowest at 53.5%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.47 times

INTEREST(Q)

Highest at JPY 2 MM

Here's what is working for Elecom Co., Ltd.

Dividend per share

Highest at JPY 5.47 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 36,863 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 36,863 MM has Grown at 17.08%

over average net sales of the previous four periods of JPY 31,485.25 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 5,880 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 5,988 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 5,988 MM has Grown at 57.27%

over average net sales of the previous four periods of JPY 3,807.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 4,799.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 4,799.86 MM has Grown at 62.71%

over average net sales of the previous four periods of JPY 2,949.89 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 136,433 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Elecom Co., Ltd.

Interest

At JPY 2 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 294,000

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 2 MM

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

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 5.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 53.5%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)