Why is Hanwa Co., Ltd. ?
1
Healthy long term growth as Operating profit has grown by an annual rate 17.20%
2
With a growth in Net Profit of 41%, the company declared Very Positive results in Mar 26
- DIVIDEND PER SHARE(HY) Highest at JPY 5.33
- INTEREST COVERAGE RATIO(Q) Highest at 1,032.75
- DEBT-EQUITY RATIO (HY) Lowest at 63.32 %
3
With ROCE of 7.96%, it has a very attractive valuation with a 0.92 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 60.17%, its profits have risen by 0.5% ; the PEG ratio of the company is 8.6
- At the current price, the company has a high dividend yield of 0
How much should you buy?
- Overall Portfolio exposure to Hanwa Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Trading & Distributors should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hanwa Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hanwa Co., Ltd.
56.21%
-0.85
85.61%
Japan Nikkei 225
78.33%
2.98
27.54%
Quality key factors
Factor
Value
Sales Growth (5y)
8.50%
EBIT Growth (5y)
17.20%
EBIT to Interest (avg)
8.45
Debt to EBITDA (avg)
5.70
Net Debt to Equity (avg)
0.82
Sales to Capital Employed (avg)
3.41
Tax Ratio
29.55%
Dividend Payout Ratio
19.99%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
8.38%
ROE (avg)
14.24%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.86
EV to EBIT
11.57
EV to EBITDA
9.82
EV to Capital Employed
0.92
EV to Sales
0.25
PEG Ratio
8.64
Dividend Yield
NA
ROCE (Latest)
7.96%
ROE (Latest)
9.98%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
9What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at JPY 5.33
INTEREST COVERAGE RATIO(Q)
Highest at 1,032.75
DEBT-EQUITY RATIO
(HY)
Lowest at 63.32 %
DEBTORS TURNOVER RATIO(HY)
Highest at 5.33 times
NET SALES(Q)
Highest at JPY 697,189 MM
OPERATING PROFIT(Q)
Highest at JPY 19,519 MM
OPERATING PROFIT MARGIN(Q)
Highest at 2.8 %
-3What is not working for the Company
ROCE(HY)
Lowest at 9.44%
INVENTORY TURNOVER RATIO(HY)
Lowest at 8.84 times
Here's what is working for Hanwa Co., Ltd.
Interest Coverage Ratio
Highest at 1,032.75
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at JPY 5.33 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Net Sales
Highest at JPY 697,189 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 19,519 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 2.8 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debt-Equity Ratio
Lowest at 63.32 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 5.33 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Hanwa Co., Ltd.
Inventory Turnover Ratio
Lowest at 8.84 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






