Futaba Corp. (6986) 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

Mimaki Engineering Co., Ltd.

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Technoflex Corp.

Sansei Technologies, Inc.

Futaba Corp.

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Yamashin-Filter Corp.

Nihon Trim Co., Ltd.

Y.A.C. HOLDINGS CO., LTD.

Yushin Precision Equipment Co., Ltd.

Nissei Plastic Industrial Co., Ltd.

Why is Futaba Corp. ?

Positive results in Mar 26

PRE-TAX PROFIT(Q) At JPY 1,835 MM has Grown at 624.58%
NET PROFIT(Q) At JPY 1,608.07 MM has Grown at 963.55%
ROCE(HY) Highest at 3.13%

With ROE of 0.88%, it has a attractive valuation with a 0.30 Price to Book Value

Over the past year, while the stock has generated a return of -0.47%, its profits have fallen by -82%
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 Futaba Corp. should be less than 10%
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 Futaba Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Futaba Corp.

-0.47%

0.27

45.39%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.09%

EBIT Growth (5y)

9.07%

EBIT to Interest (avg)

-80.34

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.64

Tax Ratio

12.77%

Dividend Payout Ratio

30.27%

Pledged Shares

Institutional Holding

0.15%

ROCE (avg)

ROE (avg)

0.74%

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

0.30

EV to EBIT

4.45

EV to EBITDA

7.98

EV to Capital Employed

-0.22

EV to Sales

-0.23

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

0.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

23What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 1,835 MM has Grown at 624.58%

NET PROFIT(Q)

At JPY 1,608.07 MM has Grown at 963.55%

ROCE(HY)

Highest at 3.13%

DEBT-EQUITY RATIO (HY)

Lowest at -42.83 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 52.69%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.78 times

DIVIDEND PER SHARE(HY)

Highest at JPY 3.53

-6What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 24.87% (YoY

INTEREST(Q)

Highest at JPY 21 MM

OPERATING PROFIT(Q)

Lowest at JPY -500 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.42 %

Here's what is working for Futaba Corp.

Pre-Tax Profit

At JPY 1,835 MM has Grown at 624.58%

over average net sales of the previous four periods of JPY 253.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,608.07 MM has Grown at 963.55%

over average net sales of the previous four periods of JPY 151.2 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -42.83 % and Grown

In each half year 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 2.78 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 3.53

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 52.69%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Futaba Corp.

Interest

At JPY 21 MM has Grown at 50%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 21 MM

in the last five periods and Increased by 50% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -500 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -4.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 24.87% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at JPY 1.57 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income