eREX Co., Ltd. (9517) 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

eREX Co., Ltd.

The Kansai Electric Power Co., Inc.

Kyushu Electric Power Co., Inc.

Shikoku Electric Power Co., Inc.

Kasumigaseki Capital Co., Ltd.

Tokyo Electric Power Co. Holdings, Inc.

Electric Power Development Co., Ltd.

The Okinawa Electric Power Co., Inc.

Hokuriku Electric Power Co.

Chubu Electric Power Co., Inc.

The Chugoku Electric Power Co., Inc.

Why is eREX Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -3.79% of over the last 5 years
The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -3.79% of over the last 5 years

With a growth in Operating Profit of 35.02%, the company declared Outstanding results in Mar 26

NET PROFIT(Q) At JPY 1,596 MM has Grown at 343.95%
ROCE(HY) Highest at 7.93%
DIVIDEND PAYOUT RATIO(Y) Highest at 107.56%

With ROCE of 7.99%, it has a very attractive valuation with a 0.89 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 8.53%, its profits have fallen by -60.3%

Underperformed the market in the last 1 year

The stock has generated a return of 8.53% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to eREX Co., Ltd. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is eREX Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

eREX Co., Ltd.

8.53%

0.75

42.20%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.64%

EBIT Growth (5y)

-3.79%

EBIT to Interest (avg)

5.90

Debt to EBITDA (avg)

1.52

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.80

Tax Ratio

44.61%

Dividend Payout Ratio

32.18%

Pledged Shares

Institutional Holding

ROCE (avg)

10.43%

ROE (avg)

11.42%

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

0.85

EV to EBIT

11.14

EV to EBITDA

7.48

EV to Capital Employed

0.89

EV to Sales

0.48

PEG Ratio

Dividend Yield

ROCE (Latest)

7.99%

ROE (Latest)

1.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

22What is working for the Company

NET PROFIT(Q)

At JPY 1,596 MM has Grown at 343.95%

ROCE(HY)

Highest at 7.93%

DIVIDEND PAYOUT RATIO(Y)

Highest at 107.56%

RAW MATERIAL COST(Y)

Fallen by -0.19% (YoY

PRE-TAX PROFIT(Q)

Highest at JPY 3,048 MM

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 70.94 times

OPERATING PROFIT(Q)

Lowest at JPY 1,745 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.24 %

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

Pre-Tax Profit

At JPY 3,048 MM has Grown at 231.03%

over average net sales of the previous four periods of JPY 920.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,596 MM has Grown at 343.95%

over average net sales of the previous four periods of JPY 359.5 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 3,048 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Dividend Payout Ratio

Highest at 107.56%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.19% (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 1,024 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 1,024 MM has Grown at 27.68%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Inventory Turnover Ratio

Lowest at 70.94 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at JPY 1,745 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales