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Forval Telecom, Inc.

  • Market Cap: Micro Cap
  • Industry: Telecom - Equipment & Accessories
  • ISIN: JP3802760003
  • TKS: 9445
JPY
542.00
40 (7.97%)

Sep 25

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Vision, Inc. ( Japan)
Okinawa Cellular Telephone Co.
WirelessGate, Inc.
Forval Telecom, Inc.
SoftBank Corp.
KDDI Corp.
Japan Communications Inc.

Why is Forval Telecom, Inc. ?

1
The company is Net-Debt Free
  • Poor long term growth as Operating profit has grown by an annual rate 23.25% of over the last 5 years
  • The company is Net-Debt Free
2
Poor long term growth as Operating profit has grown by an annual rate 23.25% of over the last 5 years
3
Negative results in Jun 26
  • ROCE(HY) Lowest at 23.48%
  • INVENTORY TURNOVER RATIO(HY) Lowest at 41.61 times
  • RAW MATERIAL COST(Y) Grown by 7.07% (YoY)
4
With ROCE of 43.14%, it has a very attractive valuation with a 2.74 Enterprise value to Capital Employed
  • 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 -5.05%, its profits have risen by 32.9% ; the PEG ratio of the company is 0.3
5
Underperformed the market in the last 1 year
  • Even though the market (Japan Nikkei 225) has generated returns of 43.58% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -5.05% returns
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Forval Telecom, Inc. should be less than 10%
  2. Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Forval Telecom, Inc. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Forval Telecom, Inc.
-100.0%
1.77
12.56%
Japan Nikkei 225
43.58%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
2.58%
EBIT Growth (5y)
23.25%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.32
Net Debt to Equity (avg)
-0.27
Sales to Capital Employed (avg)
6.52
Tax Ratio
25.14%
Dividend Payout Ratio
39.11%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
34.88%
ROE (avg)
24.72%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
2.37
EV to EBIT
6.36
EV to EBITDA
4.73
EV to Capital Employed
2.74
EV to Sales
0.33
PEG Ratio
0.28
Dividend Yield
NA
ROCE (Latest)
43.14%
ROE (Latest)
25.45%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company
INTEREST COVERAGE RATIO(Q)

Highest at 51,993.04

DEBT-EQUITY RATIO (HY)

Lowest at -23.99 %

-12What is not working for the Company
ROCE(HY)

Lowest at 23.48%

INVENTORY TURNOVER RATIO(HY)

Lowest at 41.61 times

RAW MATERIAL COST(Y)

Grown by 7.07% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 4.86 %

PRE-TAX PROFIT(Q)

Lowest at JPY 195.9 MM

NET PROFIT(Q)

Lowest at JPY 107.53 MM

EPS(Q)

Lowest at JPY 6.42

Here's what is working for Forval Telecom, Inc.

Interest Coverage Ratio
Highest at 51,993.04
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio
Lowest at -23.99 %
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 Forval Telecom, Inc.

Net Profit
At JPY 107.53 MM has Fallen at -56.57%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio
Lowest at 41.61 times 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

Operating Profit Margin
Lowest at 4.86 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at JPY 195.9 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit
Lowest at JPY 107.53 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS
Lowest at JPY 6.42
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost
Grown by 7.07% (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

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