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HOKUETSU INDUSTRIES CO., LTD.

  • Market Cap: Small Cap
  • Industry: Automobiles
  • ISIN: JP3841400009
JPY
1,720.00
-34 (-1.94%)

Dec 11

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
MODEC, Inc.
Hitachi Construction Machinery Co., Ltd.
Takeuchi Mfg. Co., Ltd.
Yamabiko Corp.
Kubota Corp.
Nisshinbo Holdings, Inc.
HOKUETSU INDUSTRIES CO., LTD.
Aichi Corp.
MITSUI E&S Co., Ltd.
TADANO Ltd.
Kyokuto Kaihatsu Kogyo Co., Ltd.
Why is HOKUETSU INDUSTRIES CO., LTD. ?
1
High Management Efficiency with a high ROE of 10.40%
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Operating profit has grown by an annual rate 5.40% of over the last 5 years
4
The company has declared Negative results for the last 4 consecutive quarters
  • ROCE(HY) Lowest at 10.93%
  • INVENTORY TURNOVER RATIO(HY) Lowest at 4.59%
  • INTEREST(Q) Highest at JPY 26.92 MM
5
With ROE of 11.81%, it has a very attractive valuation with a 1.38 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 -3.53%, its profits have fallen by -5.7%
  • At the current price, the company has a high dividend yield of 0
6
Below par performance in long term as well as near term
  • Along with generating -3.53% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to HOKUETSU INDUSTRIES CO., LTD. should be less than 10%
  2. Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is HOKUETSU INDUSTRIES CO., LTD. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
HOKUETSU INDUSTRIES CO., LTD.
-3.53%
-0.89
31.53%
Japan Nikkei 225
28.54%
1.11
25.75%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
5.58%
EBIT Growth (5y)
5.40%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.28
Sales to Capital Employed (avg)
1.26
Tax Ratio
29.93%
Dividend Payout Ratio
32.80%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
19.62%
ROE (avg)
10.40%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.38
EV to EBIT
6.49
EV to EBITDA
5.59
EV to Capital Employed
1.52
EV to Sales
0.82
PEG Ratio
NA
Dividend Yield
0.03%
ROCE (Latest)
23.42%
ROE (Latest)
11.81%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company
RAW MATERIAL COST(Y)

Fallen by -1.93% (YoY

CASH AND EQV(HY)

Highest at JPY 37,763.81 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.99%

-14What is not working for the Company
ROCE(HY)

Lowest at 10.93%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.59%

INTEREST(Q)

Highest at JPY 26.92 MM

Here's what is working for HOKUETSU INDUSTRIES CO., LTD.
Cash and Eqv
Highest at JPY 37,763.81 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio
Highest at 2.99%
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 -1.93% (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 HOKUETSU INDUSTRIES CO., LTD.
Interest
At JPY 26.92 MM has Grown at 20.97%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest
Highest at JPY 26.92 MM
in the last five periods and Increased by 20.97% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio
Lowest at 4.59%
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

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