Hitachi Zosen Corp. (7004) 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

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Hitachi Zosen Corp.

Why is Hitachi Zosen Corp. ?

ROCE(HY) Lowest at 6.06%
RAW MATERIAL COST(Y) Grown by 7.11% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 54.35 %

With ROE of 12.42%, it has a very attractive valuation with a 0.85 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 2.37%, its profits have risen by 14% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 2.37% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hitachi Zosen Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hitachi Zosen Corp.

2.27%

-0.24

36.99%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.69%

EBIT Growth (5y)

14.17%

EBIT to Interest (avg)

25.30

Debt to EBITDA (avg)

0.90

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

2.25

Tax Ratio

5.85%

Dividend Payout Ratio

19.04%

Pledged Shares

Institutional Holding

ROCE (avg)

11.66%

ROE (avg)

10.11%

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

0.85

EV to EBIT

8.10

EV to EBITDA

5.41

EV to Capital Employed

0.88

EV to Sales

0.36

PEG Ratio

0.49

Dividend Yield

0.05%

ROCE (Latest)

10.92%

ROE (Latest)

12.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-29What is not working for the Company

ROCE(HY)

Lowest at 6.06%

RAW MATERIAL COST(Y)

Grown by 7.11% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 54.35 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 14.59 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.91 times

INTEREST(Q)

Highest at JPY 372 MM

PRE-TAX PROFIT(Q)

Fallen at -36.28%

NET PROFIT(Q)

Lowest at JPY -19,765.57 MM

Here's what is working for Hitachi Zosen Corp.

Depreciation

Highest at JPY 4,768 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 Hitachi Zosen Corp.

Net Profit

At JPY -19,765.57 MM has Fallen at -572.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 372 MM has Grown at 10.39%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 372 MM

in the last five periods and Increased by 10.39% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -36.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -19,765.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 54.35 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 14.59 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 2.91 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 7.11% (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