Hirakawa Hewtech Corp.

  • Market Cap: Small Cap
  • Industry: Electronics & Appliances
  • ISIN: JP3795080005
JPY
3,345.00
-120 (-3.46%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
SWCC Corp.
Osaki Electric Co., Ltd.
Arisawa Mfg. Co., Ltd.
gremz, Inc.
Ishihara Chemical Co., Ltd.
Sinfonia Technology Co., Ltd.
Aichi Electric Co., Ltd.
Hirakawa Hewtech Corp.
SEC Carbon Ltd.
FDK Corp.
Tatsuta Electric Wire & Cable Co., Ltd.

Why is Hirakawa Hewtech Corp. ?

1
Poor Management Efficiency with a low ROE of 5.90%
  • The company has been able to generate a Return on Equity (avg) of 5.90% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.90%
  • Poor long term growth as Net Sales has grown by an annual rate of 9.89% and Operating profit at 20.04% over the last 5 years
  • The company has been able to generate a Return on Equity (avg) of 5.90% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 9.89% and Operating profit at 20.04% over the last 5 years
4
The company has declared Positive results for the last 4 consecutive quarters
  • NET PROFIT(HY) At JPY 2,197 MM has Grown at 115.26%
  • INTEREST COVERAGE RATIO(Q) Highest at 13,123.08
  • CASH AND EQV(HY) Highest at JPY 34,177 MM
5
With ROE of 7.03%, it has a very expensive valuation with a 1.65 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 88.12%, its profits have risen by 27.5% ; the PEG ratio of the company is 1.1
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Hirakawa Hewtech Corp. should be less than 10%
  2. 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 Hirakawa Hewtech Corp. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Hirakawa Hewtech Corp.
88.12%
2.45
57.23%
Japan Nikkei 225
59.79%
2.03
29.50%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
9.89%
EBIT Growth (5y)
20.04%
EBIT to Interest (avg)
90.36
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.28
Sales to Capital Employed (avg)
0.74
Tax Ratio
46.40%
Dividend Payout Ratio
44.42%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.51%
ROE (avg)
5.90%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
1.65
EV to EBIT
14.57
EV to EBITDA
10.65
EV to Capital Employed
1.87
EV to Sales
1.68
PEG Ratio
1.09
Dividend Yield
NA
ROCE (Latest)
12.83%
ROE (Latest)
7.03%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company
NET PROFIT(HY)

At JPY 2,197 MM has Grown at 115.26%

INTEREST COVERAGE RATIO(Q)

Highest at 13,123.08

CASH AND EQV(HY)

Highest at JPY 34,177 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.23 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.28 times

NET SALES(Q)

Highest at JPY 12,443 MM

-13What is not working for the Company
ROCE(HY)

Lowest at 4.14%

INTEREST(Q)

At JPY 13 MM has Grown at 18.18%

RAW MATERIAL COST(Y)

Grown by 7.15% (YoY

Here's what is working for Hirakawa Hewtech Corp.

Net Sales
At JPY 12,443 MM has Grown at 29.54%
over average net sales of the previous four periods of JPY 9,605.75 MM
MOJO Watch
Near term sales trend is very positive

Net Sales (JPY MM)

Interest Coverage Ratio
Highest at 13,123.08
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit
At JPY 2,197 MM has Grown at 115.26%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Sales
Highest at JPY 12,443 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv
Highest at JPY 34,177 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio
Highest at 3.23 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio
Highest at 4.28 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Hirakawa Hewtech Corp.

Interest
At JPY 13 MM has Grown at 18.18%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost
Grown by 7.15% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales