Fuso Dentsu Co., Ltd. (7505) 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

Daiichi Jitsugyo Co., Ltd.

Takachiho Koheki Co., Ltd.

Fuso Dentsu Co., Ltd.

Tomen Devices Corp.

Nishikawa Keisoku Co., Ltd.

Marubun Corp.

Hibino Corp.

Musashi Co., Ltd.

Forval Corp.

TOYO Corp.

PC Depot Corp.

Why is Fuso Dentsu Co., Ltd. ?

Strong Long Term Fundamental Strength with a 8.81% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 34.58% signifying high profitability per unit of total capital (equity and debt)

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at JPY 4,244.06 MM
PRE-TAX PROFIT(Q) At JPY 200.87 MM has Grown at 284.01%
ROCE(HY) Highest at 14.1%

With ROE of 12.14%, it has a very attractive valuation with a 1.06 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 124.48%, its profits have risen by 30.2% ; the PEG ratio of the company is 0.3

Market Beating Performance

The stock has generated a return of 124.48% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Fuso Dentsu Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Fuso Dentsu Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fuso Dentsu Co., Ltd.

118.21%

0.13

72.18%

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)

2.27%

EBIT Growth (5y)

8.81%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

3.53

Tax Ratio

30.16%

Dividend Payout Ratio

35.62%

Pledged Shares

Institutional Holding

ROCE (avg)

34.58%

ROE (avg)

8.86%

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

1.06

EV to EBIT

3.50

EV to EBITDA

3.19

EV to Capital Employed

1.13

EV to Sales

0.16

PEG Ratio

0.29

Dividend Yield

ROCE (Latest)

32.33%

ROE (Latest)

12.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 4,244.06 MM

PRE-TAX PROFIT(Q)

At JPY 200.87 MM has Grown at 284.01%

ROCE(HY)

Highest at 14.1%

NET PROFIT(Q)

At JPY 128.12 MM has Grown at 245.78%

RAW MATERIAL COST(Y)

Fallen by -0.3% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -75.19 %

NET SALES(Q)

At JPY 10,817.32 MM has Grown at 33.07%

-10What is not working for the Company

INTEREST(HY)

At JPY 0.96 MM has Grown at 252.4%

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.52%

Here's what is working for Fuso Dentsu Co., Ltd.

Pre-Tax Profit

At JPY 200.87 MM has Grown at 284.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Operating Cash Flow

Highest at JPY 4,244.06 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Profit

At JPY 128.12 MM has Grown at 245.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 10,817.32 MM has Grown at 33.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debt-Equity Ratio

Lowest at -75.19 %

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 -0.3% (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 58.31 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 Fuso Dentsu Co., Ltd.

Interest

At JPY 0.96 MM has Grown at 252.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 13.52%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.41 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income