Furuno Electric Co., Ltd. (6814) 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

Santec Holdings Corp.

Harada Industry Co., Ltd.

Allied Telesis Holdings K.K.

NIPPON ANTENNA CO., LTD.

Noritsu Koki Co., Ltd.

TOA Corp. (6809)

Furuno Electric Co., Ltd.

Icom, Inc.

TECHNO HORIZON Co., Ltd.

SAXA Holdings, Inc.

Iwatsu Electric Co., Ltd.

Why is Furuno Electric Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 45.31

Low Debt Company with Strong Long Term Fundamental Strength

Flat results in Feb 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DIVIDEND PER SHARE(HY) Lowest at JPY 4.79
INTEREST(Q) Highest at JPY 65 MM

With ROE of 19.79%, it has a very attractive valuation with a 2.75 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 61.92%, its profits have risen by 84.7% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 61.92% 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 Furuno Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Furuno Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Furuno Electric Co., Ltd.

61.92%

2.97

60.06%

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)

10.96%

EBIT Growth (5y)

40.27%

EBIT to Interest (avg)

45.31

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.45

Tax Ratio

8.64%

Dividend Payout Ratio

30.22%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

10.38%

ROE (avg)

9.71%

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

2.75

EV to EBIT

14.09

EV to EBITDA

11.21

EV to Capital Employed

2.95

EV to Sales

1.59

PEG Ratio

0.16

Dividend Yield

0.01%

ROCE (Latest)

20.91%

ROE (Latest)

19.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.47% (YoY

CASH AND EQV(HY)

Highest at JPY 45,156 MM

DEBT-EQUITY RATIO (HY)

Lowest at -10.46 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.86 times

NET SALES(Q)

Highest at JPY 37,860 MM

-13What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at JPY 4.79

INTEREST(Q)

Highest at JPY 65 MM

Here's what is working for Furuno Electric Co., Ltd.

Net Sales

Highest at JPY 37,860 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 45,156 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -10.46 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.86 times

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 1.47% (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 1,198 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 Furuno Electric Co., Ltd.

Interest

At JPY 65 MM has Grown at 22.64%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 65 MM

in the last five periods and Increased by 22.64% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend per share

Lowest at JPY 4.79

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)