Hakudo Co., Ltd. (7637) 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

Hakudo Co., Ltd.

Nippon Light Metal Holdings Co., Ltd.

UACJ Corp.

Daiki Aluminium Industry Co., Ltd.

Sankyo Tateyama, Inc.

Why is Hakudo Co., Ltd. ?

High Management Efficiency with a high ROE of 10.67%

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

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.67%

Negative results in Jun 25

ROCE(HY) Lowest at 7.98%
RAW MATERIAL COST(Y) Grown by 19.3% (YoY)
CASH AND EQV(HY) Lowest at JPY 9,158.98 MM

With ROE of 9.42%, it has a very attractive valuation with a 1.08 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 -6.97%, its profits have risen by 21.4% ; the PEG ratio of the company is 0.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.97% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hakudo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

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

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

Is Hakudo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hakudo Co., Ltd.

-6.97%

-0.96

24.50%

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)

9.70%

EBIT Growth (5y)

10.34%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

2.72

Tax Ratio

30.41%

Dividend Payout Ratio

45.12%

Pledged Shares

Institutional Holding

ROCE (avg)

22.07%

ROE (avg)

10.67%

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

1.08

EV to EBIT

7.44

EV to EBITDA

5.16

EV to Capital Employed

1.10

EV to Sales

0.30

PEG Ratio

0.54

Dividend Yield

ROCE (Latest)

14.84%

ROE (Latest)

9.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 3.92%

-14What is not working for the Company

ROCE(HY)

Lowest at 7.98%

RAW MATERIAL COST(Y)

Grown by 19.3% (YoY

CASH AND EQV(HY)

Lowest at JPY 9,158.98 MM

DEBT-EQUITY RATIO (HY)

Highest at -15.69 %

OPERATING PROFIT(Q)

Lowest at JPY 669.32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.92 %

PRE-TAX PROFIT(Q)

Lowest at JPY 475.09 MM

NET PROFIT(Q)

Lowest at JPY 290.46 MM

EPS(Q)

Lowest at JPY 25.61

Here's what is working for Hakudo Co., Ltd.

Debtors Turnover Ratio

Highest at 3.92%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Hakudo Co., Ltd.

Pre-Tax Profit

At JPY 475.09 MM has Fallen at -40.88%

over average net sales of the previous four periods of JPY 803.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 290.46 MM has Fallen at -48.06%

over average net sales of the previous four periods of JPY 559.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 669.32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 475.09 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 290.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 25.61

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 9,158.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -15.69 %

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

Raw Material Cost

Grown by 19.3% (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