Hakuto Co., Ltd. (7433) 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

Kaga Electronics Co., Ltd.

BIPROGY Inc.

Ryoden Corp.

Canon Marketing Japan, Inc.

Daiwabo Holdings Co., Ltd.

Elematec Corp.

Hakuto Co., Ltd.

Ryoyo Electro Corp.

Shinko Shoji Co., Ltd.

T-Gaia Corp.

Ryosan Co., Ltd.

Why is Hakuto Co., Ltd. ?

High Management Efficiency with a high ROCE of 9.48%

Healthy long term growth as Net Sales has grown by an annual rate of 3.64% and Operating profit at 26.78%

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(HY) At JPY 172 MM has Grown at 60.75%
ROCE(HY) Lowest at 6.49%
INTEREST COVERAGE RATIO(Q) Lowest at 1,603.8

With ROCE of 9.23%, it has a very attractive valuation with a 1.25 Enterprise value to Capital Employed

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 -9.51%, its profits have fallen by -0.3%

Below par performance in long term as well as near term

Along with generating -9.51% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hakuto Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Hakuto Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hakuto Co., Ltd.

-9.51%

-1.05

23.57%

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)

3.64%

EBIT Growth (5y)

26.78%

EBIT to Interest (avg)

39.68

Debt to EBITDA (avg)

2.13

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

1.90

Tax Ratio

32.13%

Dividend Payout Ratio

95.34%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

9.48%

ROE (avg)

8.64%

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

1.33

EV to EBIT

13.56

EV to EBITDA

11.53

EV to Capital Employed

1.25

EV to Sales

0.59

PEG Ratio

Dividend Yield

ROCE (Latest)

9.23%

ROE (Latest)

7.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

OPERATING CASH FLOW(Y)

Highest at JPY 16,226 MM

-28What is not working for the Company

INTEREST(HY)

At JPY 172 MM has Grown at 60.75%

ROCE(HY)

Lowest at 6.49%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,603.8

NET SALES(Q)

Lowest at JPY 40,337 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,267 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.14 %

PRE-TAX PROFIT(Q)

Lowest at JPY 971 MM

NET PROFIT(Q)

Lowest at JPY 659 MM

EPS(Q)

Lowest at JPY 35.02

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

Operating Cash Flow

Highest at JPY 16,226 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

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

Interest

At JPY 172 MM has Grown at 60.75%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 40,337 MM has Fallen at -11.9%

over average net sales of the previous four periods of JPY 45,783.25 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 1,603.8

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 971 MM has Fallen at -48.96%

over average net sales of the previous four periods of JPY 1,902.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 659 MM has Fallen at -48.96%

over average net sales of the previous four periods of JPY 1,291.06 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 40,337 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 1,267 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 971 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 659 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 35.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)