Hisaka Works Ltd. (6247) 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

Tsubakimoto Kogyo Co., Ltd.

Ebara Jitsugyo Co., Ltd.

Hisaka Works Ltd.

Shinwa Co., Ltd.

Iwaki Co. Ltd.

Shibaura Mechatronics Corp.

Rheon Automatic Machinery Co., Ltd.

Aval Data Corp.

Hirano Tecseed Co., Ltd.

Nakano Refrigerators Co., Ltd.

Zuiko Corp.

Why is Hisaka Works Ltd. ?

Poor Management Efficiency with a low ROE of 4.13%

The company has been able to generate a Return on Equity (avg) of 4.13% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.13%

Poor long term growth as Operating profit has grown by an annual rate 18.04% of over the last 5 years
The company has been able to generate a Return on Equity (avg) of 4.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 18.04% of over the last 5 years

Flat results in Mar 26

INTEREST(Q) At JPY 5 MM has Grown at 25%
RAW MATERIAL COST(Y) Grown by 22.12% (YoY)
OPERATING PROFIT MARGIN(Q) Lowest at 9.98 %

With ROE of 7.59%, it has a very attractive valuation with a 0.76 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 20.68%, its profits have risen by 51.1% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hisaka Works Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Hisaka Works Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hisaka Works Ltd.

20.68%

1.85

36.25%

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)

8.92%

EBIT Growth (5y)

18.04%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.59

Tax Ratio

27.60%

Dividend Payout Ratio

42.25%

Pledged Shares

Institutional Holding

ROCE (avg)

5.18%

ROE (avg)

4.13%

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

0.76

EV to EBIT

10.54

EV to EBITDA

7.25

EV to Capital Employed

0.73

EV to Sales

0.91

PEG Ratio

0.14

Dividend Yield

ROCE (Latest)

6.94%

ROE (Latest)

7.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

Mildly Bearish

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

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 3.82

INVENTORY TURNOVER RATIO(HY)

Highest at 2.76 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.82 times

NET SALES(Q)

Highest at JPY 13,471 MM

-4What is not working for the Company

INTEREST(Q)

At JPY 5 MM has Grown at 25%

RAW MATERIAL COST(Y)

Grown by 22.12% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 9.98 %

Here's what is working for Hisaka Works Ltd.

Dividend per share

Highest at JPY 3.82 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 13,471 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 13,471 MM has Grown at 22.81%

over average net sales of the previous four periods of JPY 10,969 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 2.76 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 3.82 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 473 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Hisaka Works Ltd.

Interest

At JPY 5 MM has Grown at 25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 9.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 22.12% (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