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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

MODEC, Inc.

Takeuchi Mfg. Co., Ltd.

Yamabiko Corp.

Nisshinbo Holdings, Inc.

HOKUETSU INDUSTRIES CO., LTD.

Aichi Corp.

Giken Ltd.

MITSUI E&S Co., Ltd.

TADANO Ltd.

Kyokuto Kaihatsu Kogyo Co., Ltd.

Namura Shipbuilding Co., Ltd.

Why is Giken Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate -17.88% of over the last 5 years

Flat results in May 25

ROCE(HY) Lowest at 1.69%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.65%
NET SALES(Q) At JPY 5,600 MM has Fallen at -15.13%

With ROE of 5.45%, it has a very attractive valuation with a 1.00 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 10.83%, its profits have risen by 74.3% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 10.83% 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 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.

11.16%

0.11

34.85%

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)

-4.67%

EBIT Growth (5y)

-17.88%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.71

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

46.17%

Pledged Shares

Institutional Holding

ROCE (avg)

10.89%

ROE (avg)

5.47%

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

1.00

EV to EBIT

14.90

EV to EBITDA

9.03

EV to Capital Employed

1.00

EV to Sales

1.29

PEG Ratio

0.25

Dividend Yield

ROCE (Latest)

6.68%

ROE (Latest)

5.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.02% (YoY

-28What is not working for the Company

ROCE(HY)

Lowest at 1.69%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.65%

NET SALES(Q)

At JPY 5,600 MM has Fallen at -15.13%

DEBT-EQUITY RATIO (HY)

Highest at -17.7 %

OPERATING PROFIT(Q)

Lowest at JPY 421 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.52 %

PRE-TAX PROFIT(Q)

Lowest at JPY 121 MM

NET PROFIT(Q)

Lowest at JPY 363 MM

EPS(Q)

Lowest at JPY -17.91

Here's what is working for Giken Ltd.

Raw Material Cost

Fallen by -2.02% (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 Giken Ltd.

Pre-Tax Profit

At JPY 121 MM has Fallen at -77.68%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

At JPY 5,600 MM has Fallen at -15.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 1.65% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at JPY 421 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 121 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 363 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -17.91

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -17.7 %

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