Hioki E.E. Corp. (6866) 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

Amano Corp.

Hioki E.E. Corp.

Riken Keiki Co., Ltd.

Dexerials Corp.

Azbil Corp.

Yokogawa Electric Corp.

Anritsu Corp.

ULVAC, Inc.

Toshiba Tec Corp.

Glory Ltd.

Topcon Corp.

Why is Hioki E.E. Corp. ?

Strong Long Term Fundamental Strength with a 22.42% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 32.02% signifying high profitability per unit of total capital (equity and debt)

Positive results in Mar 26

RAW MATERIAL COST(Y) Fallen by -1.61% (YoY)
CASH AND EQV(HY) Highest at JPY 33,040.88 MM
INVENTORY TURNOVER RATIO(HY) Highest at 3.11 times

With ROE of 12.42%, it has a very attractive valuation with a 2.44 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 120.91%, its profits have fallen by -11.8%
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 120.91% 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 buy?

Overall Portfolio exposure to Hioki E.E. Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Hioki E.E. Corp. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hioki E.E. Corp.

120.91%

2.25

38.36%

Japan Nikkei 225

75.22%

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)

13.35%

EBIT Growth (5y)

22.42%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.99

Tax Ratio

23.85%

Dividend Payout Ratio

49.61%

Pledged Shares

Institutional Holding

ROCE (avg)

32.02%

ROE (avg)

14.52%

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

2.44

EV to EBIT

13.05

EV to EBITDA

10.20

EV to Capital Employed

3.49

EV to Sales

2.19

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

26.71%

ROE (Latest)

12.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.61% (YoY

CASH AND EQV(HY)

Highest at JPY 33,040.88 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.11 times

NET SALES(Q)

Highest at JPY 11,386.31 MM

OPERATING PROFIT(Q)

Highest at JPY 2,829.79 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.85 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,329.63 MM

-3What is not working for the Company

ROCE(HY)

Lowest at 14.34%

DEBT-EQUITY RATIO (HY)

Highest at -33.44 %

Here's what is working for Hioki E.E. Corp.

Net Sales

Highest at JPY 11,386.31 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 11,386.31 MM has Grown at 12.37%

over average net sales of the previous four periods of JPY 10,132.95 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,829.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 24.85 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,329.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 33,040.88 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.11 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.61% (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 Hioki E.E. Corp.

Debt-Equity Ratio

Highest at -33.44 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio