G-Tekt Corp. (5970) 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

KYB Corp.

EXEDY Corp.

F.C.C. Co., Ltd.

Topre Corp.

Aisan Industry Co., Ltd.

Mitsuboshi Belting Ltd.

Musashi Seimitsu Industry Co., Ltd.

G-Tekt Corp.

NTN Corp.

Pacific Industrial Co., Ltd.

PIOLAX, Inc.

Why is G-Tekt Corp. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 8.25%

INTEREST(HY) At JPY 471 MM has Grown at 12.41%
ROCE(HY) Lowest at 5.66%
INTEREST COVERAGE RATIO(Q) Lowest at 3,127.85

With ROE of 6.89%, it has a very attractive valuation with a 0.38 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 17.51%, its profits have fallen by -2.9%

Underperformed the market in the last 1 year

The stock has generated a return of 17.51% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to G-Tekt Corp. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is G-Tekt Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

G-Tekt Corp.

15.37%

-0.01

26.36%

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)

8.25%

EBIT Growth (5y)

13.55%

EBIT to Interest (avg)

16.70

Debt to EBITDA (avg)

0.39

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

1.44

Tax Ratio

23.83%

Dividend Payout Ratio

30.07%

Pledged Shares

Institutional Holding

ROCE (avg)

7.14%

ROE (avg)

6.23%

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

0.38

EV to EBIT

5.02

EV to EBITDA

2.29

EV to Capital Employed

0.40

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

8.01%

ROE (Latest)

6.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.11% (YoY

-15What is not working for the Company

INTEREST(HY)

At JPY 471 MM has Grown at 12.41%

ROCE(HY)

Lowest at 5.66%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,127.85

PRE-TAX PROFIT(Q)

At JPY 2,546 MM has Fallen at -43.01%

DEBT-EQUITY RATIO (HY)

Highest at 4.09 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.1%

NET SALES(Q)

Lowest at JPY 77,329 MM

NET PROFIT(Q)

At JPY 1,993.11 MM has Fallen at -38.34%

Here's what is working for G-Tekt Corp.

Raw Material Cost

Fallen by -7.11% (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 G-Tekt Corp.

Interest

At JPY 471 MM has Grown at 12.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 77,329 MM has Fallen at -8.82%

over average net sales of the previous four periods of JPY 84,808.25 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 3,127.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 2,546 MM has Fallen at -43.01%

over average net sales of the previous four periods of JPY 4,467.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

Lowest at JPY 77,329 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Profit

At JPY 1,993.11 MM has Fallen at -38.34%

over average net sales of the previous four periods of JPY 3,232.21 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 4.09 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 7.1%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio