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.

Allied Telesis Holdings K.K.

TECHNO HORIZON Co., Ltd.

NIPPON ANTENNA CO., LTD.

Furuno Electric Co., Ltd.

Noritsu Koki Co., Ltd.

TOA Corp. (6809)

Icom, Inc.

SAXA Holdings, Inc.

Harada Industry Co., Ltd.

Iwatsu Electric Co., Ltd.

Why is Furuno Electric Co., Ltd. ?

Low Debt Company with Strong Long Term Fundamental Strength

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

With ROE of 18.74%, it has a attractive valuation with a 2.11 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 59.96%, its profits have risen by 43.9% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

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.

59.96%

4.13

63.71%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.32%

EBIT Growth (5y)

34.14%

EBIT to Interest (avg)

50.27

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.45

Tax Ratio

12.13%

Dividend Payout Ratio

30.22%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

12.15%

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

2.11

EV to EBIT

10.88

EV to EBITDA

8.66

EV to Capital Employed

2.28

EV to Sales

1.26

PEG Ratio

0.26

Dividend Yield

0.02%

ROCE (Latest)

20.92%

ROE (Latest)

18.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

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

11What is working for the Company

ROCE(HY)

Highest at 22.01%

INTEREST COVERAGE RATIO(Q)

Highest at 12,073.21

RAW MATERIAL COST(Y)

Fallen by -1.7% (YoY

CASH AND EQV(HY)

Highest at JPY 44,682 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.88 times

NET SALES(Q)

Highest at JPY 38,115 MM

PRE-TAX PROFIT(Q)

Highest at JPY 6,343 MM

-7What is not working for the Company

INTEREST(HY)

At JPY 121 MM has Grown at 11.01%

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

Interest Coverage Ratio

Highest at 12,073.21

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 38,115 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 6,343 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 44,682 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.88 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 -1.7% (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

Here's what is not working for Furuno Electric Co., Ltd.

Interest

At JPY 121 MM has Grown at 11.01%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)