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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Miura Co., Ltd.

NOK Corp.

IHI Corp.

THK CO., LTD.

Horiba Ltd.

SCREEN Holdings Co. Ltd.

Ebara Corp.

AMADA Co., Ltd.

Nabtesco Corp.

Harmonic Drive Systems, Inc.

Sumitomo Heavy Industries, Ltd.

Why is Harmonic Drive Systems, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 26.67

Low Debt Company with Strong Long Term Fundamental Strength

NET PROFIT(HY) At JPY 1,962.06 MM has Grown at -62.64%
INTEREST(Q) Highest at JPY 73.05 MM

With ROE of 7.12%, it has a expensive valuation with a 5.41 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 148.16%, its profits have risen by 62.5% ; the PEG ratio of the company is 1.2

Market Beating Performance

The stock has generated a return of 148.16% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Harmonic Drive Systems, Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Harmonic Drive Systems, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Harmonic Drive Systems, Inc.

148.16%

0.79

82.43%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.71%

EBIT Growth (5y)

30.86%

EBIT to Interest (avg)

26.67

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.57

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

5.41

EV to EBIT

269.65

EV to EBITDA

45.95

EV to Capital Employed

5.79

EV to Sales

7.20

PEG Ratio

1.22

Dividend Yield

ROCE (Latest)

2.15%

ROE (Latest)

7.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

No Trend

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

INTEREST COVERAGE RATIO(Q)

Highest at 4,554.8

DIVIDEND PAYOUT RATIO(Y)

Highest at 112.8%

RAW MATERIAL COST(Y)

Fallen by -18.14% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.33 times

NET SALES(Q)

Highest at JPY 17,374.12 MM

OPERATING PROFIT(Q)

Highest at JPY 3,327.33 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.15 %

-15What is not working for the Company

NET PROFIT(HY)

At JPY 1,962.06 MM has Grown at -62.64%

INTEREST(Q)

Highest at JPY 73.05 MM

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

Interest Coverage Ratio

Highest at 4,554.8

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 17,374.12 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 17,374.12 MM has Grown at 20.93%

over average net sales of the previous four periods of JPY 14,366.6 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 3,327.33 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 19.15 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 3.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 112.8%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -18.14% (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.

Net Profit

At JPY 1,962.06 MM has Grown at -62.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 73.05 MM has Grown at 23.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 73.05 MM

in the last five periods and Increased by 23.66% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)