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Furukawa Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Industrial Manufacturing
  • ISIN: JP3826800009
  • TKS: 5715
JPY
4,225.00
130 (3.17%)

Sep 18

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Union Tool Co.
Nikkiso Co., Ltd.
Star Micronics Co., Ltd.
Valqua Ltd.
RS Technologies Co. Ltd.
DAIWA INDUSTRIES LTD.
Shibuya Corp.
Furukawa Co., Ltd.
ASAHI YUKIZAI Corp.
Chofu Seisakusho Co., Ltd.
Aida Engineering Ltd.

Why is Furukawa Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 5.21%
  • The company has been able to generate a Return on Capital Employed (avg) of 5.21% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Operating profit has grown by an annual rate 15.16% of over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 9.91% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Operating profit has grown by an annual rate 15.16% of over the last 5 years
4
Flat results in Jun 26
  • ROCE(HY) Lowest at 9.92%
  • INTEREST(Q) Highest at JPY 198 MM
5
With ROCE of 6.25%, it has a attractive valuation with a 0.98 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 47.99%, its profits have fallen by -0.5% ; the PEG ratio of the company is 0.8
  • At the current price, the company has a high dividend yield of 0
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Furukawa Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Furukawa Co., Ltd. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Furukawa Co., Ltd.
47.99%
2.13
58.96%
Japan Nikkei 225
43.52%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
5.33%
EBIT Growth (5y)
15.16%
EBIT to Interest (avg)
25.74
Debt to EBITDA (avg)
3.13
Net Debt to Equity (avg)
0.24
Sales to Capital Employed (avg)
1.04
Tax Ratio
30.50%
Dividend Payout Ratio
20.80%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.66%
ROE (avg)
9.91%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.98
EV to EBIT
15.70
EV to EBITDA
10.76
EV to Capital Employed
0.98
EV to Sales
0.84
PEG Ratio
0.79
Dividend Yield
NA
ROCE (Latest)
6.25%
ROE (Latest)
11.81%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company
RAW MATERIAL COST(Y)

Fallen by -13.02% (YoY

CASH AND EQV(HY)

Highest at JPY 41,234 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.31 times

NET SALES(Q)

At JPY 60,220 MM has Grown at 14.12%

OPERATING PROFIT(Q)

Highest at JPY 5,523 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.17 %

-13What is not working for the Company
ROCE(HY)

Lowest at 9.92%

INTEREST(Q)

Highest at JPY 198 MM

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

Net Sales
At JPY 60,220 MM has Grown at 14.12%
over average net sales of the previous four periods of JPY 52,770.25 MM
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit
Highest at JPY 5,523 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin
Highest at 9.17 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv
Highest at JPY 41,234 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio
Highest at 7.31 times
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 -13.02% (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 1,623 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 Furukawa Co., Ltd.

Interest
At JPY 198 MM has Grown at 38.46%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest
Highest at JPY 198 MM
in the last five periods and Increased by 38.46% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

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