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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hirata Corp.

Foster Electric Company, Limited

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FUJIFILM Holdings Corp.

Tamron Co., Ltd.

Zojirushi Corp.

Casio Computer Co., Ltd.

Yokowo Co. Ltd.

Sharp Corp.

Ushio, Inc.

YA-MAN Ltd.

Why is Foster Electric Company, Limited ?

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at JPY 15,136 MM
ROCE(HY) Highest at 7.07%
DEBT-EQUITY RATIO (HY) Lowest at -20.17 %

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 78.12%, 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

Consistent Returns over the last 3 years

Along with generating 78.12% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

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

78.12%

1.45

35.93%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

1.78

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

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 15,136 MM

ROCE(HY)

Highest at 7.07%

DEBT-EQUITY RATIO (HY)

Lowest at -20.17 %

INTEREST COVERAGE RATIO(Q)

Highest at 2,861.8

RAW MATERIAL COST(Y)

Fallen by -7.01% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.17%

NET PROFIT(Q)

Highest at JPY 1,488 MM

EPS(Q)

Highest at JPY 66.6

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.44%

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

Interest Coverage Ratio

Highest at 2,861.8

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 -20.17 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Cash Flow

Highest at JPY 15,136 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Profit

Highest at JPY 1,488 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 66.6

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 4.17%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -7.01% (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 Foster Electric Company, Limited

Debtors Turnover Ratio

Lowest at 4.44%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio