FTGroup Co. Ltd. (2763) 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

New Cosmos Electric Co., Ltd.

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The Nippon Signal Co., Ltd.

SECURE, Inc. (Japan)

Hochiki Corp.

FTGroup Co. Ltd.

Aiphone Co., Ltd.

Fenwal Controls of Japan, Ltd.

Nohmi Bosai Ltd.

Daido Signal Co., Ltd.

Why is FTGroup Co. Ltd. ?

High Management Efficiency with a high ROE of 21.69%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of -5.48% and Operating profit at 7.86% over the last 5 years

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at JPY 6,376 MM
NET SALES(HY) At JPY 16,052 MM has Grown at -9.11%
INTEREST(HY) At JPY 16 MM has Grown at 6.67%

With ROE of 22.15%, it has a very attractive valuation with a 1.12 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 7.90%, its profits have risen by 25.1% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 7.90% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to FTGroup Co. Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

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

Is FTGroup Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

FTGroup Co. Ltd.

7.9%

0.44

23.36%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.48%

EBIT Growth (5y)

7.86%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

1.24

Tax Ratio

29.09%

Dividend Payout Ratio

24.96%

Pledged Shares

Institutional Holding

ROCE (avg)

55.78%

ROE (avg)

21.69%

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

1.12

EV to EBIT

2.22

EV to EBITDA

2.03

EV to Capital Employed

1.27

EV to Sales

0.50

PEG Ratio

0.19

Dividend Yield

ROCE (Latest)

56.97%

ROE (Latest)

22.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 30,766.67

RAW MATERIAL COST(Y)

Fallen by -6.63% (YoY

NET PROFIT(Q)

Highest at JPY 1,496 MM

EPS(Q)

Highest at JPY 50.32

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 6,376 MM

NET SALES(HY)

At JPY 16,052 MM has Grown at -9.11%

INTEREST(HY)

At JPY 16 MM has Grown at 6.67%

ROCE(HY)

Lowest at 17.68%

INVENTORY TURNOVER RATIO(HY)

Lowest at 87.47 times

DEBT-EQUITY RATIO (HY)

Highest at -41.35 %

OPERATING PROFIT(Q)

Lowest at JPY 1,846 MM

Here's what is working for FTGroup Co. Ltd.

Interest Coverage Ratio

Highest at 30,766.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

Highest at JPY 1,496 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 50.32

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -6.63% (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 FTGroup Co. Ltd.

Operating Cash Flow

Lowest at JPY 6,376 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

At JPY 16,052 MM has Grown at -9.11%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

At JPY 16 MM has Grown at 6.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 87.47 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

Lowest at JPY 1,846 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Debt-Equity Ratio

Highest at -41.35 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at JPY 0.1 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income