Foster Electric Company, Limited (6794) 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

Doshisha Co., Ltd.

Casio Computer Co., Ltd.

Yokowo Co. Ltd.

Foster Electric Company, Limited

Hirata Corp.

Tamron Co., Ltd.

FUJIFILM Holdings Corp.

Sharp Corp.

Zojirushi Corp.

Ushio, Inc.

YA-MAN Ltd.

Why is Foster Electric Company, Limited ?

Poor Management Efficiency with a low ROE of 3.73%

The company has been able to generate a Return on Equity (avg) of 3.73% signifying low profitability per unit of shareholders funds

Low Debt Company with Strong Long Term Fundamental Strength

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at JPY 10,429 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 4.21 times
NET SALES(Q) Fallen at -9.53%

With ROE of 9.60%, it has a very attractive valuation with a 0.59 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 105.55%, its profits have risen by 66.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 105.55% 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 Foster Electric Company, Limited should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

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

Is Foster Electric Company, Limited for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Foster Electric Company, Limited

-100.0%

1.73

39.90%

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)

5.10%

EBIT Growth (5y)

26.92%

EBIT to Interest (avg)

-15.57

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

1.80

Tax Ratio

24.31%

Dividend Payout Ratio

34.29%

Pledged Shares

Institutional Holding

ROCE (avg)

5.46%

ROE (avg)

3.73%

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

0.59

EV to EBIT

3.25

EV to EBITDA

2.21

EV to Capital Employed

0.47

EV to Sales

0.16

PEG Ratio

0.09

Dividend Yield

0.03%

ROCE (Latest)

14.46%

ROE (Latest)

9.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.51% (YoY

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 10,429 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.21 times

NET SALES(Q)

Fallen at -9.53%

PRE-TAX PROFIT(Q)

Lowest at JPY 1,624 MM

NET PROFIT(Q)

Lowest at JPY 657 MM

EPS(Q)

Lowest at JPY 29.29

Here's what is working for Foster Electric Company, Limited

Raw Material Cost

Fallen by -3.51% (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

Depreciation

Highest at JPY 869 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 Foster Electric Company, Limited

Operating Cash Flow

Lowest at JPY 10,429 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Net Sales

Fallen at -9.53%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY 1,624 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 657 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 29.29

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 4.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio