Funai Soken Holdings, Inc. (9757) 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

BayCurrent Consulting, Inc.

SCSK Corp.

Visional, Inc.

transcosmos, Inc.

SOHGO SECURITY SERVICES CO., LTD.

TKC Corp.

Funai Soken Holdings, Inc.

SECOM Co., Ltd.

Medley, Inc.

ITOCHU Techno-Solutions Corp.

AEON DELIGHT CO., LTD.

Why is Funai Soken Holdings, Inc. ?

High Management Efficiency with a high ROE of 20.09%

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

INTEREST COVERAGE RATIO(Q) Lowest at 40,140.19
INVENTORY TURNOVER RATIO(HY) Lowest at 87.32%
INTEREST(Q) Highest at JPY 6.28 MM

With ROE of 25.68%, it has a very attractive valuation with a 5.04 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 -9.12%, its profits have risen by 7.6% ; the PEG ratio of the company is 2.6
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.12% returns in the last 1 year, the stock has also underperformed 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 Funai Soken Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Funai Soken Holdings, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Funai Soken Holdings, Inc.

-9.56%

0.15

21.88%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.58%

EBIT Growth (5y)

8.16%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

1.15

Tax Ratio

26.95%

Dividend Payout Ratio

58.59%

Pledged Shares

Institutional Holding

ROCE (avg)

57.88%

ROE (avg)

20.09%

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

5.04

EV to EBIT

12.38

EV to EBITDA

11.71

EV to Capital Employed

9.13

EV to Sales

3.37

PEG Ratio

2.59

Dividend Yield

0.04%

ROCE (Latest)

73.73%

ROE (Latest)

25.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

DIVIDEND PER SHARE(HY)

Highest at JPY 7.69

RAW MATERIAL COST(Y)

Fallen by -6.5% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -57.93 %

OPERATING PROFIT(Q)

Highest at JPY 2,520 MM

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 40,140.19

INVENTORY TURNOVER RATIO(HY)

Lowest at 87.32%

INTEREST(Q)

Highest at JPY 6.28 MM

Here's what is working for Funai Soken Holdings, Inc.

Dividend per share

Highest at JPY 7.69 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Operating Profit

Highest at JPY 2,520 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Debt-Equity Ratio

Lowest at -57.93 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -6.5% (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 143.27 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 Funai Soken Holdings, Inc.

Interest

At JPY 6.28 MM has Grown at 356.25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 40,140.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 6.28 MM

in the last five periods and Increased by 356.25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 87.32%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio