FALTEC Co., Ltd. (7215) 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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FALTEC Co., Ltd.

Why is FALTEC Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.41%

The company has been able to generate a Return on Capital Employed (avg) of 5.41% signifying low profitability per unit of total capital (equity and debt)

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

Poor long term growth as Net Sales has grown by an annual rate of -1.50% and Operating profit at 1.79% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.82% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.50% and Operating profit at 1.79% over the last 5 years

With a fall in Net Sales of -8.94%, the company declared Very Negative results in Dec 25

The company has declared negative results in Mar 25 after 2 consecutive negative quarters
INTEREST(HY) At JPY 175 MM has Grown at 53.51%
NET PROFIT(Q) At JPY 79 MM has Fallen at -84.66%
PRE-TAX PROFIT(Q) At JPY 417 MM has Fallen at -52.12%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -15.45%, its profits have fallen by -38.7%

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 Auto Components & Equipments)

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

Is FALTEC Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

FALTEC Co., Ltd.

-15.45%

-0.92

35.95%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.50%

EBIT Growth (5y)

1.79%

EBIT to Interest (avg)

9.66

Debt to EBITDA (avg)

2.10

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

1.87

Tax Ratio

77.45%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.41%

ROE (avg)

4.82%

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

0.18

EV to EBIT

5.49

EV to EBITDA

1.91

EV to Capital Employed

0.46

EV to Sales

0.16

PEG Ratio

Dividend Yield

ROCE (Latest)

8.34%

ROE (Latest)

4.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 50.37 %

-28What is not working for the Company

INTEREST(HY)

At JPY 175 MM has Grown at 53.51%

NET PROFIT(Q)

At JPY 79 MM has Fallen at -84.66%

PRE-TAX PROFIT(Q)

At JPY 417 MM has Fallen at -52.12%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.06 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.11 times

NET SALES(Q)

Fallen at -8.94%

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

Debt-Equity Ratio

Lowest at 50.37 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Interest

At JPY 175 MM has Grown at 53.51%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 79 MM has Fallen at -84.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 417 MM has Fallen at -52.12%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

Fallen at -8.94%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 6.06 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 5.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.46 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income