Why is Hanshin Diesel Works, Ltd. ?
1
Poor Management Efficiency with a low ROE of 3.08%
- The company has been able to generate a Return on Equity (avg) of 3.08% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 3.08%
- Poor long term growth as Net Sales has grown by an annual rate of 8.95% and Operating profit at 28.55% over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 3.08% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 8.95% and Operating profit at 28.55% over the last 5 years
4
Negative results in Jun 26
- INTEREST(HY) At JPY 0.57 MM has Grown at 53.78%
- NET SALES(HY) At JPY 7,797.12 MM has Grown at -10.96%
- DEBT-EQUITY RATIO (HY) Highest at -25.99 %
5
With ROE of 5.39%, it has a expensive valuation with a 1.19 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 110.61%, its profits have risen by 253.4% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 0
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hanshin Diesel Works, Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Hanshin Diesel Works, Ltd.
110.61%
2.88
48.20%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality key factors
Factor
Value
Sales Growth (5y)
8.95%
EBIT Growth (5y)
28.55%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
0.83
Tax Ratio
21.67%
Dividend Payout Ratio
40.06%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.71%
ROE (avg)
3.08%
Valuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
1.19
EV to EBIT
13.07
EV to EBITDA
8.58
EV to Capital Employed
1.29
EV to Sales
0.88
PEG Ratio
0.09
Dividend Yield
NA
ROCE (Latest)
9.84%
ROE (Latest)
5.39%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -33.17% (YoY
-13What is not working for the Company
INTEREST(HY)
At JPY 0.57 MM has Grown at 53.78%
NET SALES(HY)
At JPY 7,797.12 MM has Grown at -10.96%
DEBT-EQUITY RATIO
(HY)
Highest at -25.99 %
CASH AND EQV(HY)
Lowest at JPY 9,196.4 MM
Here's what is working for Hanshin Diesel Works, Ltd.
Raw Material Cost
Fallen by -33.17% (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 161.85 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Hanshin Diesel Works, Ltd.
Interest
At JPY 0.57 MM has Grown at 53.78%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
At JPY 7,797.12 MM has Grown at -10.96%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Debt-Equity Ratio
Highest at -25.99 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Cash and Eqv
Lowest at JPY 9,196.4 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






