Why is HIROSE ELECTRIC CO., LTD. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Healthy long term growth as Net Sales has grown by an annual rate of 9.24% and Operating profit at 15.46%
3
Positive results in Dec 25
- INVENTORY TURNOVER RATIO(HY) Highest at 4.41 times
- CASH AND EQV(HY) Highest at JPY 170,362 MM
- DEBT-EQUITY RATIO (HY) Lowest at -21.26 %
4
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 17.38%, 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.
17.38%
0.55
35.35%
Japan Nikkei 225
36.73%
1.30
28.24%
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)
0.48
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
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
6What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 4.41 times
CASH AND EQV(HY)
Highest at JPY 170,362 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -21.26 %
NET SALES(Q)
Highest at JPY 54,524 MM
OPERATING PROFIT(Q)
Highest at JPY 17,071 MM
-3What is not working for the Company
INTEREST(9M)
At JPY 665 MM has Grown at 5.22%
RAW MATERIAL COST(Y)
Grown by 7.39% (YoY
Here's what is working for HIROSE ELECTRIC CO., LTD.
Inventory Turnover Ratio
Highest at 4.41 times 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
Net Sales
Highest at JPY 54,524 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 17,071 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Cash and Eqv
Highest at JPY 170,362 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -21.26 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at JPY 5,036 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
At JPY 665 MM has Grown at 5.22%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Raw Material Cost
Grown by 7.39% (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






