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Hokuriku Electric Industry Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Electronics & Appliances
  • ISIN: JP3844600001
JPY
2,310.00
-110 (-4.55%)

Aug 07

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

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Nihon Dempa Kogyo Co., Ltd.
Shindengen Electric Manufacturing Co. Ltd.
Sumida Corp.
V Technology Co., Ltd.
SAMCO, Inc.
Daishinku Corp.
Nippon Carbide Industries Co., Inc.
Miraial Co., Ltd.
Hokuriku Electric Industry Co., Ltd.
Cosel Co., Ltd.
EDP Corp.

Why is Hokuriku Electric Industry Co., Ltd. ?

1
Weak Long Term Fundamental Strength with a 5.92% CAGR growth in Net Sales over the last 5 years
  • The company has been able to generate a Return on Equity (avg) of 8.52% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 5.92% over the last 5 years
  • ROCE(HY) Lowest at 8.18%
  • INTEREST COVERAGE RATIO(Q) Lowest at 2,468.97
  • RAW MATERIAL COST(Y) Grown by 14.59% (YoY)
3
With ROCE of 12.19%, it has a very attractive valuation with a 0.77 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 8.86%, its profits have fallen by -16.7%
  • At the current price, the company has a high dividend yield of 0
4
Underperformed the market in the last 1 year
  • The stock has generated a return of 8.86% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Hokuriku Electric Industry Co., Ltd. should be less than 10%
  2. 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, Medium Return

Absolute
Risk Adjusted
Volatility
Hokuriku Electric Industry Co., Ltd.
8.86%
2.23
29.65%
Japan Nikkei 225
59.79%
2.03
29.50%
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)
5.92%
EBIT Growth (5y)
81.86%
EBIT to Interest (avg)
36.10
Debt to EBITDA (avg)
0.35
Net Debt to Equity (avg)
-0.14
Sales to Capital Employed (avg)
1.36
Tax Ratio
28.83%
Dividend Payout Ratio
37.54%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.15%
ROE (avg)
8.52%
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
9
Industry P/E
Price to Book Value
0.80
EV to EBIT
6.31
EV to EBITDA
4.43
EV to Capital Employed
0.77
EV to Sales
0.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
12.19%
ROE (Latest)
8.54%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
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

7What is working for the Company
DEBT-EQUITY RATIO (HY)

Lowest at -13.61 %

DIVIDEND PER SHARE(HY)

Highest at JPY 4.97

DIVIDEND PAYOUT RATIO(Y)

Highest at 239.65%

CASH AND EQV(HY)

Highest at JPY 24,912 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.08 times

-23What is not working for the Company
ROCE(HY)

Lowest at 8.18%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,468.97

RAW MATERIAL COST(Y)

Grown by 14.59% (YoY

INTEREST(Q)

Highest at JPY 29 MM

OPERATING PROFIT(Q)

Lowest at JPY 716 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.47 %

PRE-TAX PROFIT(Q)

Lowest at JPY 465 MM

NET PROFIT(Q)

At JPY 303.79 MM has Fallen at -41.47%

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

Debt-Equity Ratio
Lowest at -13.61 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share
Highest at JPY 4.97 and Grown
In each year in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv
Highest at JPY 24,912 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio
Highest at 4.08 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio
Highest at 239.65%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation
Highest at JPY 340 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 Hokuriku Electric Industry Co., Ltd.

Interest
At JPY 29 MM has Grown at 38.1%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio
Lowest at 2,468.97
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest
Highest at JPY 29 MM
in the last five periods and Increased by 38.1% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit
Lowest at JPY 716 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin
Lowest at 6.47 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at JPY 465 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit
At JPY 465 MM has Fallen at -36.32%
over average net sales of the previous four periods of JPY 730.25 MM
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit
At JPY 303.79 MM has Fallen at -41.47%
over average net sales of the previous four periods of JPY 519.05 MM
MOJO Watch
Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost
Grown by 14.59% (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

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