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
Company has very low debt and has enough cash to service the debt requirements
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
With a growth in Net Sales of 11.22%, the company declared Very Positive results in Dec 25
- NET PROFIT(HY) At JPY 321.62 MM has Grown at 923.54%
- NET SALES(9M) At JPY 9,953.12 MM has Grown at 18.87%
- ROCE(HY) Highest at 5.54%
5
With ROE of 5.39%, it has a very attractive valuation with a 1.28 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 127.85%, 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
6
Market Beating performance in long term as well as near term
- Along with generating 127.85% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Hanshin Diesel Works, 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 Hanshin Diesel Works, Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hanshin Diesel Works, Ltd.
127.85%
2.49
46.11%
Japan Nikkei 225
69.82%
2.74
25.48%
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)
0.80
Tax Ratio
22.06%
Dividend Payout Ratio
42.25%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.31%
ROE (avg)
3.08%
Valuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
1.28
EV to EBIT
14.44
EV to EBITDA
9.47
EV to Capital Employed
1.42
EV to Sales
0.97
PEG Ratio
0.09
Dividend Yield
NA
ROCE (Latest)
9.84%
ROE (Latest)
5.39%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
14What is working for the Company
NET PROFIT(HY)
At JPY 321.62 MM has Grown at 923.54%
NET SALES(9M)
At JPY 9,953.12 MM has Grown at 18.87%
ROCE(HY)
Highest at 5.54%
RAW MATERIAL COST(Y)
Fallen by -34.49% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 4.03 times
-4What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -31.19 %
NET SALES(Q)
At JPY 3,243.93 MM has Fallen at -10.36%
Here's what is working for Hanshin Diesel Works, Ltd.
Net Profit
At JPY 321.62 MM has Grown at 923.54%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (JPY MM)
Debtors Turnover Ratio
Highest at 4.03 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -34.49% (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 Hanshin Diesel Works, Ltd.
Net Sales
At JPY 3,243.93 MM has Fallen at -10.36%
over average net sales of the previous four periods of JPY 3,619 MMMOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Debt-Equity Ratio
Highest at -31.19 % 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






