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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sansei Technologies, Inc.

Technoflex Corp.

Marumae Co., Ltd.

Mimaki Engineering Co., Ltd.

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

Nitto Seiko Co., Ltd.

Futaba Corp.

Yamashin-Filter Corp.

Nihon Trim Co., Ltd.

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

PRE-TAX PROFIT(Q) At JPY -404 MM has Fallen at -189.78%
NET PROFIT(Q) At JPY -442 MM has Fallen at -382.02%
RAW MATERIAL COST(Y) Grown by 6.98% (YoY)

With ROE of 1.51%, it has a risky valuation with a 0.40 Price to Book Value

Over the past year, while the stock has generated a return of 21.14%, its profits have fallen by -31.4%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

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.

21.14%

0.03

42.09%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

0.72

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -40.25 %

-26What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -404 MM has Fallen at -189.78%

NET PROFIT(Q)

At JPY -442 MM has Fallen at -382.02%

RAW MATERIAL COST(Y)

Grown by 6.98% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.34%

NET SALES(Q)

Lowest at JPY 10,411 MM

Here's what is working for Futaba Corp.

Debt-Equity Ratio

Lowest at -40.25 % 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

Here's what is not working for Futaba Corp.

Net Sales

At JPY 10,411 MM has Fallen at -13.45%

over average net sales of the previous four periods of JPY 12,029 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -404 MM has Fallen at -189.78%

over average net sales of the previous four periods of JPY 450 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -442 MM has Fallen at -382.02%

over average net sales of the previous four periods of JPY 156.73 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 10,411 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Debtors Turnover Ratio

Lowest at 3.34%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 6.98% (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