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

Ogura Clutch Co., Ltd.

Tein, Inc.

Kanemitsu Corp.

Mitsuchi Corp.

HKS Co., Ltd.

Sawafuji Electric Co., Ltd.

Sanko Co., Ltd. (Nagano)

Meiwa Industry Co., Ltd.

Nikki Co., Ltd.

J-MAX Co., Ltd.

FALTEC Co., Ltd.

Why is HKS Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Flat results in Feb 26

INVENTORY TURNOVER RATIO(HY) Lowest at 1.63 times
INTEREST(Q) Highest at JPY 1.33 MM

With ROE of 2.49%, it has a very attractive valuation with a 0.35 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 13.80%, its profits have fallen by -28.4%

Underperformed the market in the last 1 year

The stock has generated a return of 13.80% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

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.

13.8%

0.30

19.14%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.30%

EBIT Growth (5y)

21.81%

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

31.80%

Dividend Payout Ratio

25.43%

Pledged Shares

Institutional Holding

ROCE (avg)

5.84%

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

0.35

EV to EBIT

6.17

EV to EBITDA

1.85

EV to Capital Employed

0.20

EV to Sales

0.19

PEG Ratio

Dividend Yield

ROCE (Latest)

3.22%

ROE (Latest)

2.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Bearish

OBV

Mildly Bearish

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.13% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 9.4 times

PRE-TAX PROFIT(Q)

Highest at JPY 220.34 MM

NET PROFIT(Q)

Highest at JPY 152.15 MM

EPS(Q)

Highest at JPY 110.14

-12What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.63 times

INTEREST(Q)

Highest at JPY 1.33 MM

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

Pre-Tax Profit

At JPY 220.34 MM has Grown at 284.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 152.15 MM has Grown at 207.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 220.34 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 152.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 110.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 9.4 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 -6.13% (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.

Interest

At JPY 1.33 MM has Grown at 55.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 1.33 MM

in the last five periods and Increased by 55.92% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 1.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio