HIROSE ELECTRIC CO., LTD. (6806) 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

Hosiden Corp.

IBIDEN Co., Ltd.

TDK Corp.

Citizen Watch Co., Ltd.

Nichicon Corp.

HIROSE ELECTRIC CO., LTD.

Taiyo Yuden Co., Ltd.

Hamamatsu Photonics KK

Japan Display, Inc.

Japan Aviation Electronics Industry Ltd.

Shinko Electric Industries Co., Ltd.

Why is HIROSE ELECTRIC CO., LTD. ?

Negative results in Jun 26

OPERATING CASH FLOW(Y) Lowest at JPY 34,038 MM
ROCE(HY) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 102.42% (YoY)

With ROE of 8.01%, it has a fair valuation with a 2.58 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 41.48%, its profits have fallen by -9.3%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 41.48% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

HIROSE ELECTRIC CO., LTD.

41.48%

1.33

40.64%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.38%

EBIT Growth (5y)

11.24%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

0.50

Tax Ratio

28.92%

Dividend Payout Ratio

50.91%

Pledged Shares

Institutional Holding

7.28%

ROCE (avg)

15.09%

ROE (avg)

8.28%

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

2.58

EV to EBIT

21.47

EV to EBITDA

14.73

EV to Capital Employed

3.04

EV to Sales

4.41

PEG Ratio

Dividend Yield

ROCE (Latest)

14.15%

ROE (Latest)

8.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

7What is working for the Company

NET SALES(Q)

Highest at JPY 62,085 MM

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 34,038 MM

ROCE(HY)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 102.42% (YoY

CASH AND EQV(HY)

Lowest at JPY 87,335 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

OPERATING PROFIT(Q)

Lowest at JPY 13,607 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 21.92 %

PRE-TAX PROFIT(Q)

Lowest at JPY 0 MM

Here's what is working for HIROSE ELECTRIC CO., LTD.

Net Sales

Highest at JPY 62,085 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 62,085 MM has Grown at 17.55%

over average net sales of the previous four periods of JPY 52,816 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Here's what is not working for HIROSE ELECTRIC CO., LTD.

Pre-Tax Profit

At JPY 0 MM has Fallen at -100%

over average net sales of the previous four periods of JPY 11,656.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 34,038 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Operating Profit

Lowest at JPY 13,607 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 21.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 0 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Cash and Eqv

Lowest at JPY 87,335 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 102.42% (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