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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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 7.19% and Operating profit at 6.65% over the last 5 years

Positive results in Mar 26

INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
PRE-TAX PROFIT(Q) At JPY 850.53 MM has Grown at 123.59%
RAW MATERIAL COST(Y) Fallen by -7.99% (YoY)

With ROE of 7.76%, it has a very attractive valuation with a 0.80 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 33.93%, its profits have risen by 6.4% ; the PEG ratio of the company is 1.6

Underperformed the market in the last 1 year

The stock has generated a return of 33.93% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

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.

43.39%

1.08

31.62%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.19%

EBIT Growth (5y)

6.65%

EBIT to Interest (avg)

99.27

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

0.85

Tax Ratio

26.22%

Dividend Payout Ratio

34.17%

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

0.80

EV to EBIT

7.04

EV to EBITDA

4.96

EV to Capital Employed

0.72

EV to Sales

0.58

PEG Ratio

1.61

Dividend Yield

ROCE (Latest)

10.16%

ROE (Latest)

7.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

11What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

PRE-TAX PROFIT(Q)

At JPY 850.53 MM has Grown at 123.59%

RAW MATERIAL COST(Y)

Fallen by -7.99% (YoY

NET SALES(Q)

Highest at JPY 4,246.44 MM

OPERATING PROFIT(Q)

Highest at JPY 939.55 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.13 %

NET PROFIT(Q)

At JPY 584.34 MM has Grown at 106.26%

-9What is not working for the Company

INTEREST(HY)

At JPY 7.4 MM has Grown at 14.28%

CASH AND EQV(HY)

Lowest at JPY 9,878.01 MM

DEBT-EQUITY RATIO (HY)

Highest at -27.94 %

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

Net Sales

At JPY 4,246.44 MM has Grown at 31.57%

over average net sales of the previous four periods of JPY 3,227.46 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 850.53 MM has Grown at 123.59%

over average net sales of the previous four periods of JPY 380.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

Highest at JPY 4,246.44 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 939.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 22.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At JPY 584.34 MM has Grown at 106.26%

over average net sales of the previous four periods of JPY 283.3 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -7.99% (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.

Interest

At JPY 7.4 MM has Grown at 14.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 9,878.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -27.94 %

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