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

Kasumigaseki Capital Co., Ltd.

eREX Co., Ltd.

Chubu Electric Power Co., Inc.

The Kansai Electric Power Co., Inc.

Kyushu Electric Power Co., Inc.

Electric Power Development Co., Ltd.

The Okinawa Electric Power Co., Inc.

Hokuriku Electric Power Co.

The Chugoku Electric Power Co., Inc.

Tokyo Electric Power Co. Holdings, Inc.

Shikoku 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

Flat results in Dec 25

INTEREST(9M) At JPY 1,014 MM has Grown at 16.69%
CASH AND EQV(HY) Lowest at JPY 43,989 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 51.15 times

With ROCE of 7.99%, it has a expensive valuation with a 1.07 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 -4.09%, its profits have fallen by -60.3%

Below par performance in long term as well as near term

Along with generating -4.09% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

-2.8%

0.26

40.38%

Japan Nikkei 225

81.96%

3.25

27.24%

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)

11.05

Debt to EBITDA (avg)

1.03

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.93

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

1.09

EV to EBIT

13.36

EV to EBITDA

8.97

EV to Capital Employed

1.07

EV to Sales

0.57

PEG Ratio

Dividend Yield

ROCE (Latest)

7.99%

ROE (Latest)

1.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

9What is working for the Company

NET PROFIT(Q)

At JPY 2,149 MM has Grown at 326.18%

ROCE(HY)

Highest at 2.14%

PRE-TAX PROFIT(Q)

At JPY 2,216 MM has Grown at 68.42%

-8What is not working for the Company

INTEREST(9M)

At JPY 1,014 MM has Grown at 16.69%

CASH AND EQV(HY)

Lowest at JPY 43,989 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 51.15 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.84 times

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

Net Profit

At JPY 2,149 MM has Grown at 326.18%

over average net sales of the previous four periods of JPY 504.25 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 2,216 MM has Grown at 68.42%

over average net sales of the previous four periods of JPY 1,315.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

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

Interest

At JPY 1,014 MM has Grown at 16.69%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 43,989 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 51.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio