Fenwal Controls of Japan, Ltd. (6870) 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

New Cosmos Electric Co., Ltd.

Terilogy Holdings Co., Ltd.

Hochiki Corp.

Aiphone Co., Ltd.

The Nippon Signal Co., Ltd.

Nohmi Bosai Ltd.

Future Innovation Group, Inc.

Daido Signal Co., Ltd.

Fenwal Controls of Japan, Ltd.

SECURE, Inc. (Japan)

FTGroup Co. Ltd.

Why is Fenwal Controls of Japan, Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 99.27

Poor long term growth as Net Sales has grown by an annual rate of 4.37% and Operating profit at 8.13% over the last 5 years

With a fall in Net Sales of -31.06%, the company declared Very Negative results in Jun 25

INTEREST(9M) At JPY 10.61 MM has Grown at 28.94%
NET SALES(Q) At JPY 2,661.02 MM has Fallen at -16.31%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.62%

With ROE of 9.13%, it has a very attractive valuation with a 0.75 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 2.47%, its profits have risen by 8.2% ; the PEG ratio of the company is 1

Underperformed the market in the last 1 year

The stock has generated a return of 2.47% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 27.37%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fenwal Controls of Japan, 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 Fenwal Controls of Japan, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fenwal Controls of Japan, Ltd.

-100.0%

0.58

10.82%

Japan Nikkei 225

27.37%

1.06

25.71%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.37%

EBIT Growth (5y)

8.13%

EBIT to Interest (avg)

99.27

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

0.87

Tax Ratio

26.22%

Dividend Payout Ratio

37.18%

Pledged Shares

Institutional Holding

ROCE (avg)

16.63%

ROE (avg)

8.44%

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

0.75

EV to EBIT

4.35

EV to EBITDA

3.20

EV to Capital Employed

0.60

EV to Sales

0.41

PEG Ratio

1.00

Dividend Yield

ROCE (Latest)

13.88%

ROE (Latest)

9.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 129.71%

RAW MATERIAL COST(Y)

Fallen by 0.72% (YoY

NET PROFIT(9M)

Higher at JPY 1,134.78 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.75%

-20What is not working for the Company

INTEREST(9M)

At JPY 10.61 MM has Grown at 28.94%

NET SALES(Q)

At JPY 2,661.02 MM has Fallen at -16.31%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.62%

PRE-TAX PROFIT(Q)

At JPY 222.46 MM has Fallen at -46.51%

NET PROFIT(Q)

At JPY 151.77 MM has Fallen at -50.77%

Here's what is working for Fenwal Controls of Japan, Ltd.

Debtors Turnover Ratio

Highest at 3.75%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 129.71%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.72% (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

Here's what is not working for Fenwal Controls of Japan, Ltd.

Net Sales

At JPY 2,661.02 MM has Fallen at -16.31%

over average net sales of the previous four periods of JPY 3,179.72 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 4.13 MM has Grown at 21.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 222.46 MM has Fallen at -46.51%

over average net sales of the previous four periods of JPY 415.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 151.77 MM has Fallen at -50.77%

over average net sales of the previous four periods of JPY 308.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 2.62% 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

Interest

Highest at JPY 4.13 MM

in the last five periods and Increased by 21.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)