ScoreWhy is Harmonic Drive Systems, Inc. ?
1
Poor Management Efficiency with a low ROE of 5.04%
- The company has been able to generate a Return on Equity (avg) of 5.04% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 24.28% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 5.04% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Operating profit has grown by an annual rate 24.28% of over the last 5 years
4
With ROE of 2.84%, it has a attractive valuation with a 8.39 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 179.14%, its profits have fallen by -48.2%
Real-Time Research ReportHow 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, Medium Return
Absolute
Risk Adjusted
Volatility
Harmonic Drive Systems, Inc.
152.17%
0.76
87.12%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.97%
EBIT Growth (5y)
24.28%
EBIT to Interest (avg)
27.02
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.12
Sales to Capital Employed (avg)
0.58
Tax Ratio
29.85%
Dividend Payout Ratio
117.69%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.47%
ROE (avg)
5.04%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
296
Industry P/E
Price to Book Value
8.39
EV to EBIT
259.61
EV to EBITDA
67.14
EV to Capital Employed
9.16
EV to Sales
11.19
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.53%
ROE (Latest)
2.84%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 4,641.56
INVENTORY TURNOVER RATIO(HY)
Highest at 3.27 times
OPERATING PROFIT(Q)
Highest at JPY 3,574 MM
OPERATING PROFIT MARGIN(Q)
Highest at 21.43 %
PRE-TAX PROFIT(Q)
At JPY 1,706 MM has Grown at 122.99%
NET PROFIT(Q)
At JPY 1,274 MM has Grown at 123.59%
RAW MATERIAL COST(Y)
Fallen by -26.27% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -6.48 %
NET SALES(Q)
At JPY 16,681 MM has Grown at 12.03%
EPS(Q)
Highest at JPY 13.46
-11What is not working for the Company
NET PROFIT(HY)
At JPY 2,783.52 MM has Grown at -40.99%
INTEREST(Q)
Highest at JPY 77 MM
Here's what is working for Harmonic Drive Systems, Inc.
Interest Coverage Ratio
Highest at 4,641.56 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at JPY 3,574 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 21.43 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
At JPY 1,706 MM has Grown at 122.99%
over average net sales of the previous four periods of JPY 765.06 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 1,274 MM has Grown at 123.59%
over average net sales of the previous four periods of JPY 569.78 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 3.27 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
At JPY 16,681 MM has Grown at 12.03%
over average net sales of the previous four periods of JPY 14,889.47 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
EPS
Highest at JPY 13.46
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Lowest at -6.48 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -26.27% (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.
Interest
Highest at JPY 77 MM
in the last five periods and Increased by 5.41% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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