Giken Ltd. (6289) 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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Giken Ltd.

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Why is Giken Ltd. ?

Weak Long Term Fundamental Strength with a 4.51% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 4.51% of over the last 5 years

Flat results in May 26

NET PROFIT(HY) At JPY 488 MM has Grown at -45.85%
CASH AND EQV(HY) Lowest at JPY 14,501 MM
DEBT-EQUITY RATIO (HY) Highest at -16.82 %

With ROE of 6.54%, it has a expensive valuation with a 1.23 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 29.29%, its profits have risen by 16.4% ; the PEG ratio of the company is 0.9

Underperformed the market in the last 1 year

The stock has generated a return of 29.29% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Giken Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Giken Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Giken Ltd.

29.29%

0.00

36.59%

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)

4.04%

EBIT Growth (5y)

4.51%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.69

Tax Ratio

24.98%

Dividend Payout Ratio

96.92%

Pledged Shares

Institutional Holding

ROCE (avg)

10.68%

ROE (avg)

5.88%

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

1.23

EV to EBIT

15.33

EV to EBITDA

10.15

EV to Capital Employed

1.27

EV to Sales

1.46

PEG Ratio

0.89

Dividend Yield

ROCE (Latest)

8.31%

ROE (Latest)

6.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

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

5What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 425 MM has Grown at 251.24%

RAW MATERIAL COST(Y)

Fallen by -14.08% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.98 times

-6What is not working for the Company

NET PROFIT(HY)

At JPY 488 MM has Grown at -45.85%

CASH AND EQV(HY)

Lowest at JPY 14,501 MM

DEBT-EQUITY RATIO (HY)

Highest at -16.82 %

NET SALES(Q)

Lowest at JPY 5,414 MM

Here's what is working for Giken Ltd.

Pre-Tax Profit

At JPY 425 MM has Grown at 251.24%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Highest at 4.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -14.08% (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 360 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 Giken Ltd.

Net Profit

At JPY 488 MM has Grown at -45.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 5,414 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 14,501 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -16.82 %

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

Non Operating Income

Highest at JPY 0.28 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income