Hi-Lex Corp. (7279) 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

Nippon Seiki Co., Ltd.

Bando Chemical Industries Ltd.

Futaba Industrial Co., Ltd.

Topre Corp.

Aisan Industry Co., Ltd.

Hi-Lex Corp.

Press Kogyo Co., Ltd.

TPR Co., Ltd.

G-Tekt Corp.

Pacific Industrial Co., Ltd.

PIOLAX, Inc.

Why is Hi-Lex Corp. ?

Poor Management Efficiency with a low ROE of 2.06%

The company has been able to generate a Return on Equity (avg) of 2.06% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.55% and Operating profit at -25.25% over the last 5 years

Negative results in Apr 25

INTEREST(Q) At JPY 110 MM has Grown at 74.6%
PRE-TAX PROFIT(Q) At JPY 1,449 MM has Fallen at -29.14%
NET PROFIT(Q) At JPY 654.3 MM has Fallen at -36.3%

With ROE of 3.57%, it has a very attractive valuation with a 0.39 Price to Book Value

Over the past year, while the stock has generated a return of 79.14%, its profits have risen by 18.6% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 79.14% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hi-Lex Corp. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Hi-Lex Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Hi-Lex Corp.

79.14%

2.43

41.56%

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)

5.55%

EBIT Growth (5y)

-25.25%

EBIT to Interest (avg)

-1.80

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.26

Sales to Capital Employed (avg)

1.61

Tax Ratio

31.52%

Dividend Payout Ratio

76.06%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

1.15%

ROE (avg)

2.06%

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

0.39

EV to EBIT

15.58

EV to EBITDA

1.98

EV to Capital Employed

0.18

EV to Sales

0.08

PEG Ratio

0.58

Dividend Yield

0.03%

ROCE (Latest)

1.15%

ROE (Latest)

3.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

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

NET PROFIT(HY)

At JPY 1,450.56 MM has Grown at 3,791.61%

ROCE(HY)

Highest at 2.03%

DIVIDEND PAYOUT RATIO(Y)

Highest at 83.95%

RAW MATERIAL COST(Y)

Fallen by -22.82% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 6.48

-4What is not working for the Company

INTEREST(Q)

At JPY 110 MM has Grown at 74.6%

PRE-TAX PROFIT(Q)

At JPY 1,449 MM has Fallen at -29.14%

NET PROFIT(Q)

At JPY 654.3 MM has Fallen at -36.3%

Here's what is working for Hi-Lex Corp.

Dividend per share

Highest at JPY 6.48

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 83.95%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -22.82% (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 Hi-Lex Corp.

Interest

At JPY 110 MM has Grown at 74.6%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 1,449 MM has Fallen at -29.14%

over average net sales of the previous four periods of JPY 2,044.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 654.3 MM has Fallen at -36.3%

over average net sales of the previous four periods of JPY 1,027.22 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)