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

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

Yamashin-Filter Corp.

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Futaba Corp.

Yushin Precision Equipment Co., Ltd.

Nissei Plastic Industrial Co., Ltd.

Why is Futaba Corp. ?

Poor Management Efficiency with a low ROE of 0.74%

The company has been able to generate a Return on Equity (avg) of 0.74% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.40% and Operating profit at 10.54% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 22.99%, its profits have fallen by -31.4%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 22.99% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Futaba Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Futaba Corp.

22.99%

0.39

48.93%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.40%

EBIT Growth (5y)

10.54%

EBIT to Interest (avg)

-776.38

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.69

Tax Ratio

68.34%

Dividend Payout Ratio

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

0.40

EV to EBIT

0.62

EV to EBITDA

3.54

EV to Capital Employed

-0.02

EV to Sales

-0.02

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

1.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

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

12What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 2,020 MM has Grown at 353.93%

NET PROFIT(Q)

At JPY 1,916.8 MM has Grown at 821.3%

DEBT-EQUITY RATIO (HY)

Lowest at -42.18 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.48 times

-5What is not working for the Company

NET SALES(HY)

At JPY 21,254 MM has Grown at -9.56%

RAW MATERIAL COST(Y)

Grown by 13.45% (YoY

Here's what is working for Futaba Corp.

Pre-Tax Profit

At JPY 2,020 MM has Grown at 353.93%

over average net sales of the previous four periods of JPY 445 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,916.8 MM has Grown at 821.3%

over average net sales of the previous four periods of JPY 208.05 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -42.18 % 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 2.48 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Futaba Corp.

Net Sales

At JPY 21,254 MM has Grown at -9.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Raw Material Cost

Grown by 13.45% (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 1.3 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income