HKS Co., Ltd. (7219) 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

Tein, Inc.

J-MAX Co., Ltd.

Ogura Clutch Co., Ltd.

Nikki Co., Ltd.

HKS Co., Ltd.

Mitsuchi Corp.

Kanemitsu Corp.

Sawafuji Electric Co., Ltd.

Meiwa Industry Co., Ltd.

Sanko Co., Ltd. (Nagano)

FALTEC Co., Ltd.

Why is HKS Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.22%

The company has been able to generate a Return on Equity (avg) of 4.22% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.22%

Poor long term growth as Net Sales has grown by an annual rate of 4.38% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 4.22% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.38% over the last 5 years

Positive results in May 26

ROCE(HY) Highest at 4.52%
RAW MATERIAL COST(Y) Fallen by -4.25% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 9.51 times

With ROE of 3.37%, it has a very expensive valuation with a 0.34 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 20.88%, its profits have risen by 10.3% ; the PEG ratio of the company is 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HKS Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is HKS Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

HKS Co., Ltd.

20.88%

1.10

20.98%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.38%

EBIT Growth (5y)

11.87%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

0.81

Tax Ratio

30.06%

Dividend Payout Ratio

25.43%

Pledged Shares

Institutional Holding

ROCE (avg)

5.97%

ROE (avg)

4.22%

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

0.34

EV to EBIT

4.46

EV to EBITDA

1.71

EV to Capital Employed

0.20

EV to Sales

0.19

PEG Ratio

0.97

Dividend Yield

ROCE (Latest)

4.41%

ROE (Latest)

3.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly 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

20What is working for the Company

ROCE(HY)

Highest at 4.52%

RAW MATERIAL COST(Y)

Fallen by -4.25% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 9.51 times

NET SALES(Q)

Highest at JPY 2,667.79 MM

OPERATING PROFIT(Q)

Highest at JPY 455.27 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.07 %

PRE-TAX PROFIT(Q)

Highest at JPY 356.49 MM

NET PROFIT(Q)

Highest at JPY 237.01 MM

EPS(Q)

Highest at JPY 161.51

-11What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.63 times

INTEREST(Q)

Highest at JPY 1.42 MM

Here's what is working for HKS Co., Ltd.

Net Sales

Highest at JPY 2,667.79 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 455.27 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 17.07 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 356.49 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 356.49 MM has Grown at 85.18%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 237.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 237.01 MM has Grown at 92.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 161.51

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 9.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.25% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for HKS Co., Ltd.

Inventory Turnover Ratio

Lowest at 1.63 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 1.42 MM

in the last five periods and Increased by 6.99% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)