Fujisash Co., Ltd. (5940) 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

Moriya Transportation Engineering & Manufacturing Co., Ltd.

Ainavo Holdings Co., Ltd.

Komatsu Wall Industry Co., Ltd.

Eidai Co., Ltd.

Fujisash Co., Ltd.

KVK Corp.

Maezawa Kasei Industries Co., Ltd.

INABA SEISAKUSHO Co., Ltd.

Nihon Flush Co., Ltd.

Noda Corp.

Danto Holdings Corp.

Why is Fujisash Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.32%

The company has been able to generate a Return on Capital Employed (avg) of 4.32% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 1.65% and Operating profit at 57.25% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.21% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

INTEREST(HY) At JPY 204 MM has Grown at 17.24%
ROCE(HY) Lowest at 8.32%
INVENTORY TURNOVER RATIO(HY) Lowest at 8.77 times

With ROCE of 10.34%, it has a very attractive valuation with a 0.66 Enterprise value to Capital Employed

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 2.63%, its profits have risen by 24.9% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 2.63% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fujisash Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Fujisash Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fujisash Co., Ltd.

2.63%

-0.55

34.88%

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)

1.65%

EBIT Growth (5y)

57.25%

EBIT to Interest (avg)

4.72

Debt to EBITDA (avg)

2.59

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

2.21

Tax Ratio

21.74%

Dividend Payout Ratio

14.18%

Pledged Shares

Institutional Holding

ROCE (avg)

4.32%

ROE (avg)

5.21%

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

0.53

EV to EBIT

6.42

EV to EBITDA

3.90

EV to Capital Employed

0.66

EV to Sales

0.22

PEG Ratio

0.17

Dividend Yield

ROCE (Latest)

10.34%

ROE (Latest)

12.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 26.46%

RAW MATERIAL COST(Y)

Fallen by -2.24% (YoY

NET PROFIT(9M)

Higher at JPY 2,549.81 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 4.65

-14What is not working for the Company

INTEREST(HY)

At JPY 204 MM has Grown at 17.24%

ROCE(HY)

Lowest at 8.32%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.77 times

NET SALES(Q)

Fallen at -9.5%

PRE-TAX PROFIT(Q)

Fallen at -29.91%

NET PROFIT(Q)

Fallen at -37.81%

Here's what is working for Fujisash Co., Ltd.

Dividend Payout Ratio

Highest at 26.46% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Dividend per share

Highest at JPY 4.65

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -2.24% (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 588 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 Fujisash Co., Ltd.

Interest

At JPY 204 MM has Grown at 17.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Fallen at -9.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Fallen at -29.91%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -37.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 8.77 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio