Why is Foster Electric Company, Limited ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- The company is Net-Debt Free
2
With a growth in Net Profit of 128.38%, the company declared Very Positive results in Mar 26
- ROCE(HY) Highest at 7.7%
- DIVIDEND PER SHARE(HY) Highest at JPY 4.37
- NET SALES(Q) Highest at JPY 34,907 MM
3
With ROE of 8.89%, it has a expensive valuation with a 1.10 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 50.74%, its profits have risen by 31.2% ; the PEG ratio of the company is 0.4
- At the current price, the company has a high dividend yield of 0
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?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Foster Electric Company, Limited
51.15%
1.87
38.86%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality key factors
Factor
Value
Sales Growth (5y)
9.54%
EBIT Growth (5y)
70.71%
EBIT to Interest (avg)
-11.29
Debt to EBITDA (avg)
0.16
Net Debt to Equity (avg)
-0.23
Sales to Capital Employed (avg)
1.81
Tax Ratio
22.42%
Dividend Payout Ratio
36.20%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.25%
ROE (avg)
3.73%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.10
EV to EBIT
8.91
EV to EBITDA
5.99
EV to Capital Employed
1.12
EV to Sales
0.45
PEG Ratio
0.40
Dividend Yield
NA
ROCE (Latest)
12.59%
ROE (Latest)
8.89%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
9What is working for the Company
ROCE(HY)
Highest at 7.7%
DIVIDEND PER SHARE(HY)
Highest at JPY 4.37
NET SALES(Q)
Highest at JPY 34,907 MM
PRE-TAX PROFIT(Q)
Highest at JPY 2,515 MM
NET PROFIT(Q)
Highest at JPY 1,674 MM
EPS(Q)
Highest at JPY 74.46
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at JPY 6,936 MM
RAW MATERIAL COST(Y)
Grown by 7.55% (YoY
Here's what is working for Foster Electric Company, Limited
Dividend per share
Highest at JPY 4.37 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Net Sales
Highest at JPY 34,907 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
Highest at JPY 2,515 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 1,674 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 1,674 MM has Grown at 118.34%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 74.46
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Depreciation
Highest at JPY 929 MM
in the last five periodsMOJO 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 6,936 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Raw Material Cost
Grown by 7.55% (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






