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.

Tamron Co., Ltd.

Foster Electric Company, Limited

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Casio Computer Co., Ltd.

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Ushio, Inc.

Zojirushi Corp.

Hirata Corp.

Sharp Corp.

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

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

With ROE of 8.89%, it has a very attractive valuation with a 1.18 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 87.85%, 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

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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Foster Electric Company, Limited

87.85%

1.91

37.20%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.54%

EBIT Growth (5y)

70.71%

EBIT to Interest (avg)

-15.57

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

1.81

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

1.18

EV to EBIT

9.72

EV to EBITDA

6.53

EV to Capital Employed

1.22

EV to Sales

0.49

PEG Ratio

0.43

Dividend Yield

ROCE (Latest)

12.59%

ROE (Latest)

8.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly 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

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 years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 34,907 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 2,515 MM

in the last five periods

MOJO 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 periods

MOJO 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 periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 929 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 6,936 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)

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