Why is HIROSE ELECTRIC CO., LTD. ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- Healthy long term growth as Net Sales has grown by an annual rate of 9.24% and Operating profit at 15.46%
- 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 14.11% signifying high profitability per unit of total capital (equity and debt)
2
With ROE of 8.92%, it has a very attractive valuation with a 1.61 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 -7.84%, its profits have risen by 24.8% ; the PEG ratio of the company is 0.7
- At the current price, the company has a high dividend yield of 0
How much should you buy?
- Overall Portfolio exposure to HIROSE ELECTRIC CO., LTD. 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 HIROSE ELECTRIC CO., LTD. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
HIROSE ELECTRIC CO., LTD.
-7.84%
-0.10
28.96%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
9.24%
EBIT Growth (5y)
15.46%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.23
Sales to Capital Employed (avg)
0.49
Tax Ratio
28.53%
Dividend Payout Ratio
50.19%
Pledged Shares
0
Institutional Holding
7.28%
ROCE (avg)
14.11%
ROE (avg)
8.28%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.61
EV to EBIT
11.90
EV to EBITDA
8.39
EV to Capital Employed
1.79
EV to Sales
2.70
PEG Ratio
0.67
Dividend Yield
0.00%
ROCE (Latest)
15.03%
ROE (Latest)
8.92%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 50,907 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 4.25%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.43%
-10What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 5.95% (YoY
INTEREST(Q)
Highest at JPY 665 MM
Here's what is working for HIROSE ELECTRIC CO., LTD.
Operating Cash Flow
Highest at JPY 50,907 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Inventory Turnover Ratio
Highest at 4.25% 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
Debtors Turnover Ratio
Highest at 4.43%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at JPY 4,647 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for HIROSE ELECTRIC CO., LTD.
Interest
Highest at JPY 665 MM
in the last five periods and Increased by 5.72% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Raw Material Cost
Grown by 5.95% (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






