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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Fenwal Controls of Japan, Ltd.

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Daido Signal 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

Negative results in Dec 25

INTEREST(HY) At JPY 9.43 MM has Grown at 55.07%
PRE-TAX PROFIT(Q) At JPY 199.09 MM has Fallen at -52.71%
NET PROFIT(Q) At JPY 134.1 MM has Fallen at -56.65%

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 18.48%, 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 18.48% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.30%

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.

18.48%

1.22

14.54%

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)

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)

0.86

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

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

No Trend

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

2What is working for the Company

ROCE(HY)

Highest at 8.85%

-21What is not working for the Company

INTEREST(HY)

At JPY 9.43 MM has Grown at 55.07%

PRE-TAX PROFIT(Q)

At JPY 199.09 MM has Fallen at -52.71%

NET PROFIT(Q)

At JPY 134.1 MM has Fallen at -56.65%

INTEREST COVERAGE RATIO(Q)

Lowest at 5,064.03

RAW MATERIAL COST(Y)

Grown by 5.79% (YoY

CASH AND EQV(HY)

Lowest at JPY 11,302.65 MM

DEBT-EQUITY RATIO (HY)

Highest at -28.81 %

OPERATING PROFIT(Q)

Lowest at JPY 233 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.46 %

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

Depreciation

Highest at JPY 120.87 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 Fenwal Controls of Japan, Ltd.

Interest

At JPY 9.43 MM has Grown at 55.07%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 199.09 MM has Fallen at -52.71%

over average net sales of the previous four periods of JPY 420.99 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 134.1 MM has Fallen at -56.65%

over average net sales of the previous four periods of JPY 309.38 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 5,064.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 233 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 6.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at JPY 11,302.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -28.81 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 5.79% (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