Harmonic Drive Systems, Inc. (6324) 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

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Harmonic Drive Systems, Inc.

Why is Harmonic Drive Systems, Inc. ?

Flat results in Jun 25

PRE-TAX PROFIT(Q) At JPY 214.26 MM has Fallen at -85.64%
NET PROFIT(Q) At JPY -38.25 MM has Fallen at -103.48%
INTEREST COVERAGE RATIO(Q) Lowest at 2,714.79

With ROE of 5.58%, it has a attractive valuation with a 3.78 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 51.71%, its profits have risen by 31.3% ; the PEG ratio of the company is 2.2

Real-Time Research Report

Verdict Report

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 Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Harmonic Drive Systems, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Harmonic Drive Systems, Inc.

51.71%

-0.15

75.31%

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)

8.22%

EBIT Growth (5y)

15.28%

EBIT to Interest (avg)

26.67

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.55

Tax Ratio

27.34%

Dividend Payout Ratio

54.69%

Pledged Shares

Institutional Holding

ROCE (avg)

3.96%

ROE (avg)

5.04%

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

3.78

EV to EBIT

41454.48

EV to EBITDA

36.11

EV to Capital Employed

4.12

EV to Sales

5.21

PEG Ratio

2.17

Dividend Yield

ROCE (Latest)

0.01%

ROE (Latest)

5.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

9What is working for the Company

NET PROFIT(HY)

Higher at JPY 4,717.37 MM

RAW MATERIAL COST(Y)

Fallen by -8.48% (YoY

CASH AND EQV(HY)

Highest at JPY 46,729.87 MM

DEBT-EQUITY RATIO (HY)

Lowest at -3.83 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.74%

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 214.26 MM has Fallen at -85.64%

NET PROFIT(Q)

At JPY -38.25 MM has Fallen at -103.48%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,714.79

INTEREST(Q)

Highest at JPY 68.75 MM

Here's what is working for Harmonic Drive Systems, Inc.

Cash and Eqv

Highest at JPY 46,729.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -3.83 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.74%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.48% (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 Harmonic Drive Systems, Inc.

Pre-Tax Profit

At JPY 214.26 MM has Fallen at -85.64%

over average net sales of the previous four periods of JPY 1,492.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -38.25 MM has Fallen at -103.48%

over average net sales of the previous four periods of JPY 1,100.36 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 68.75 MM has Grown at 13.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,714.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 68.75 MM

in the last five periods and Increased by 13.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)