Fukuda Denshi Co., Ltd. (6960) 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

HOYA Corp.

Sumitomo Bakelite Co., Ltd.

JEOL Ltd.

Terumo Corp.

Shimadzu Corp.

Asahi Intecc Co., Ltd.

Fukuda Denshi Co., Ltd.

Sysmex Corp.

Nakanishi, Inc.

Nihon Kohden Corp.

Olympus Corp.

Why is Fukuda Denshi Co., Ltd. ?

High Management Efficiency with a high ROE of 10.63%

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

Flat results in Dec 25

INTEREST(HY) At JPY 23 MM has Grown at 9.52%
DEBT-EQUITY RATIO (HY) Highest at -32.38 %

With ROE of 10.15%, it has a very attractive valuation with a 1.46 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 51.52%, its profits have fallen by -1.4%
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 51.52% 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 hold?

Overall Portfolio exposure to Fukuda Denshi Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Fukuda Denshi Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Fukuda Denshi Co., Ltd.

51.52%

2.31

27.98%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.83%

EBIT Growth (5y)

14.26%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

0.80

Tax Ratio

31.41%

Dividend Payout Ratio

30.21%

Pledged Shares

Institutional Holding

ROCE (avg)

24.46%

ROE (avg)

10.63%

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

1.46

EV to EBIT

7.52

EV to EBITDA

5.34

EV to Capital Employed

1.75

EV to Sales

1.40

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

23.25%

ROE (Latest)

10.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

5What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.95 times

INTEREST COVERAGE RATIO(Q)

Highest at 97,177.78

RAW MATERIAL COST(Y)

Fallen by 1.14% (YoY

-7What is not working for the Company

INTEREST(HY)

At JPY 23 MM has Grown at 9.52%

DEBT-EQUITY RATIO (HY)

Highest at -32.38 %

Here's what is working for Fukuda Denshi Co., Ltd.

Interest Coverage Ratio

Highest at 97,177.78

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 3.95 times and Grown

In each half year 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 1.14% (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 3,009 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 Fukuda Denshi Co., Ltd.

Interest

At JPY 23 MM has Grown at 9.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -32.38 %

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