Ferrotec Holdings Corp. (6890) 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

Restar Corp.

Kyocera Corp.

Micronics Japan Co., Ltd.

Rorze Corp.

Ferrotec Holdings Corp.

Renesas Electronics Corp.

ROHM Co., Ltd.

Socionext, Inc.

Nikon Corp.

Sanken Electric Co., Ltd.

JSR Corp.

Why is Ferrotec Holdings Corp. ?

High Management Efficiency with a high ROE of 12.30%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 17.59

Healthy long term growth as Net Sales has grown by an annual rate of 26.56% and Operating profit at 28.94%

The company has declared Negative results for the last 8 consecutive quarters

ROCE(HY) Lowest at 5.88%
DEBT-EQUITY RATIO (HY) Highest at 32.9 %
DEBTORS TURNOVER RATIO(HY) Lowest at 3.17 times

With ROE of 7.43%, it has a very attractive valuation with a 1.27 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 289.91%, its profits have fallen by -6.3%

Market Beating performance in long term as well as near term

Along with generating 289.91% returns in the last 1 year, the stock has outperformed 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 Ferrotec Holdings Corp. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ferrotec Holdings Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ferrotec Holdings Corp.

289.91%

5.22

46.38%

Japan Nikkei 225

69.82%

2.78

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.56%

EBIT Growth (5y)

28.94%

EBIT to Interest (avg)

17.59

Debt to EBITDA (avg)

0.47

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

0.67

Tax Ratio

22.94%

Dividend Payout Ratio

42.20%

Pledged Shares

Institutional Holding

0.27%

ROCE (avg)

14.72%

ROE (avg)

12.30%

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

1.27

EV to EBIT

14.26

EV to EBITDA

7.10

EV to Capital Employed

1.21

EV to Sales

1.32

PEG Ratio

Dividend Yield

ROCE (Latest)

8.45%

ROE (Latest)

7.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

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

6What is working for the Company

PRE-TAX PROFIT(Q)

Highest at JPY 6,643 MM

RAW MATERIAL COST(Y)

Fallen by -9.68% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 20.15 %

NET PROFIT(Q)

Highest at JPY 3,983.61 MM

EPS(Q)

Highest at JPY 71.04

-20What is not working for the Company

ROCE(HY)

Lowest at 5.88%

DEBT-EQUITY RATIO (HY)

Highest at 32.9 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.17 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,091.03

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.67 times

INTEREST(Q)

Highest at JPY 1,305 MM

Here's what is working for Ferrotec Holdings Corp.

Pre-Tax Profit

Highest at JPY 6,643 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Operating Profit Margin

Highest at 20.15 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at JPY 3,983.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 71.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -9.68% (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 Ferrotec Holdings Corp.

Interest

At JPY 1,305 MM has Grown at 100.46%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,091.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 32.9 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 3.17 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at JPY 1,305 MM

in the last five periods and Increased by 100.46% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 2.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio