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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

HOYA Corp.

Nihon Kohden Corp.

Terumo Corp.

Asahi Intecc Co., Ltd.

JEOL Ltd.

Sumitomo Bakelite Co., Ltd.

Fukuda Denshi Co., Ltd.

Nakanishi, Inc.

Shimadzu Corp.

Sysmex 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 Jun 25

INTEREST(HY) At JPY 34 MM has Grown at 88.89%
INTEREST COVERAGE RATIO(Q) Lowest at 49,707.14
OPERATING PROFIT(Q) Lowest at JPY 6,959 MM

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 -0.72%, its profits have fallen by -1.4%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -0.72% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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, Low Return

Absolute

Risk Adjusted

Volatility

Fukuda Denshi Co., Ltd.

-0.72%

0.59

24.81%

Japan Nikkei 225

28.54%

1.11

25.75%

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.42% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.85%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.35%

-15What is not working for the Company

INTEREST(HY)

At JPY 34 MM has Grown at 88.89%

INTEREST COVERAGE RATIO(Q)

Lowest at 49,707.14

OPERATING PROFIT(Q)

Lowest at JPY 6,959 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 22.91 %

PRE-TAX PROFIT(Q)

Lowest at JPY 4,364 MM

NET PROFIT(Q)

Lowest at JPY 2,825.76 MM

EPS(Q)

Lowest at JPY 100.87

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

Inventory Turnover Ratio

Highest at 3.85%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.35%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.42% (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 2,779 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 34 MM has Grown at 88.89%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 49,707.14

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 6,959 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 22.91 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 4,364 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 2,825.76 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 100.87

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)