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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kasumigaseki Capital Co., Ltd.

Kyushu Electric Power Co., Inc.

Shikoku Electric Power Co., Inc.

Chubu Electric Power Co., Inc.

The Kansai Electric Power Co., Inc.

The Chugoku Electric Power Co., Inc.

Electric Power Development Co., Ltd.

Hokuriku Electric Power Co.

The Okinawa Electric Power Co., Inc.

eREX Co., Ltd.

Tokyo Electric Power Co. Holdings, Inc.

Why is eREX Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 0.77% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 0.77% of over the last 5 years

Negative results in Jun 25

NET SALES(Q) At JPY 37,047 MM has Fallen at -13.45%
PRE-TAX PROFIT(Q) At JPY 612 MM has Fallen at -61.67%
NET PROFIT(Q) At JPY -135 MM has Fallen at -125.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.49% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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 Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is eREX Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

eREX Co., Ltd.

-4.13%

-0.20

32.02%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.07%

EBIT Growth (5y)

0.77%

EBIT to Interest (avg)

11.05

Debt to EBITDA (avg)

1.03

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

2.15

Tax Ratio

40.36%

Dividend Payout Ratio

38.40%

Pledged Shares

Institutional Holding

ROCE (avg)

14.42%

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

0.94

EV to EBIT

7.35

EV to EBITDA

5.33

EV to Capital Employed

0.95

EV to Sales

0.41

PEG Ratio

0.14

Dividend Yield

ROCE (Latest)

12.94%

ROE (Latest)

5.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

4What is working for the Company

NET PROFIT(9M)

Higher at JPY 295 MM

-32What is not working for the Company

NET SALES(Q)

At JPY 37,047 MM has Fallen at -13.45%

PRE-TAX PROFIT(Q)

At JPY 612 MM has Fallen at -61.67%

NET PROFIT(Q)

At JPY -135 MM has Fallen at -125.5%

INTEREST COVERAGE RATIO(Q)

Lowest at 202.96

RAW MATERIAL COST(Y)

Grown by 13.99% (YoY

INTEREST(Q)

Highest at JPY 1,014 MM

OPERATING PROFIT(Q)

Lowest at JPY 2,058 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.56 %

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

Depreciation

Highest at JPY 937 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

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

Net Sales

At JPY 37,047 MM has Fallen at -13.45%

over average net sales of the previous four periods of JPY 42,804.25 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 612 MM has Fallen at -61.67%

over average net sales of the previous four periods of JPY 1,596.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -135 MM has Fallen at -125.5%

over average net sales of the previous four periods of JPY 529.5 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 1,014 MM has Grown at 57.94%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 202.96

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 1,014 MM

in the last five periods and Increased by 57.94% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 2,058 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 5.56 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 13.99% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales