Hokuriku Electric Industry Co., Ltd. (6989) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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

Sumida Corp.

SAMCO, Inc.

Nippon Carbide Industries Co., Inc.

Hokuriku Electric Industry Co., Ltd.

Nihon Dempa Kogyo Co., Ltd.

Shindengen Electric Manufacturing Co. Ltd.

Daishinku Corp.

Miraial Co., Ltd.

V Technology Co., Ltd.

Cosel Co., Ltd.

EDP Corp.

Why is Hokuriku Electric Industry Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 33.30

Healthy long term growth as Operating profit has grown by an annual rate 25.57%

Flat results in Jun 25

INTEREST(HY) At JPY 41 MM has Grown at 20.59%
NET PROFIT(Q) At JPY 258.02 MM has Fallen at -56.83%
NET SALES(Q) Lowest at JPY 10,094 MM

With ROCE of 13.33%, it has a very attractive valuation with a 0.84 Enterprise value to Capital Employed

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 81.28%, its profits have fallen by -8.1% ; the PEG ratio of the company is 8.2
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 81.28% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hokuriku Electric Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Hokuriku Electric Industry Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Hokuriku Electric Industry Co., Ltd.

81.28%

3.38

30.61%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.21%

EBIT Growth (5y)

25.57%

EBIT to Interest (avg)

33.30

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.43

Tax Ratio

20.71%

Dividend Payout Ratio

33.25%

Pledged Shares

Institutional Holding

ROCE (avg)

10.94%

ROE (avg)

8.52%

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

0.86

EV to EBIT

6.27

EV to EBITDA

4.50

EV to Capital Employed

0.84

EV to Sales

0.38

PEG Ratio

8.16

Dividend Yield

0.02%

ROCE (Latest)

13.33%

ROE (Latest)

10.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.45% (YoY

CASH AND EQV(HY)

Highest at JPY 23,793 MM

DEBT-EQUITY RATIO (HY)

Lowest at -18.09 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.08%

-16What is not working for the Company

INTEREST(HY)

At JPY 41 MM has Grown at 20.59%

NET PROFIT(Q)

At JPY 258.02 MM has Fallen at -56.83%

NET SALES(Q)

Lowest at JPY 10,094 MM

PRE-TAX PROFIT(Q)

At JPY 506 MM has Fallen at -31.92%

Here's what is working for Hokuriku Electric Industry Co., Ltd.

Cash and Eqv

Highest at JPY 23,793 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -18.09 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.08%

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 -4.45% (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 Hokuriku Electric Industry Co., Ltd.

Interest

At JPY 41 MM has Grown at 20.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 258.02 MM has Fallen at -56.83%

over average net sales of the previous four periods of JPY 597.66 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 10,094 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 10,094 MM has Fallen at -6.5%

over average net sales of the previous four periods of JPY 10,796.25 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 506 MM has Fallen at -31.92%

over average net sales of the previous four periods of JPY 743.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)