Hokuriku Electrical Construction Co., Ltd. (1930) 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

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ASAHI KOGYOSHA CO., LTD.

Hokuriku Electrical Construction Co., Ltd.

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Meiko Construction Co., Ltd.

Why is Hokuriku Electrical Construction Co., Ltd. ?

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

Poor long term growth as Net Sales has grown by an annual rate of 3.71% and Operating profit at 2.45% over the last 5 years

Positive results in Mar 26

ROCE(HY) Highest at 8.6%
NET SALES(Q) At JPY 17,117 MM has Grown at 37.66%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 7.85%, it has a very attractive valuation with a 1.09 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 48.23%, its profits have fallen by -5.7%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 48.23% 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 Hokuriku Electrical Construction Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Hokuriku Electrical Construction Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Hokuriku Electrical Construction Co., Ltd.

48.23%

609.26

33.75%

Japan Nikkei 225

85.83%

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)

3.71%

EBIT Growth (5y)

2.45%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

1.28

Tax Ratio

31.79%

Dividend Payout Ratio

38.64%

Pledged Shares

Institutional Holding

ROCE (avg)

18.45%

ROE (avg)

5.99%

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

1.09

EV to EBIT

6.82

EV to EBITDA

5.40

EV to Capital Employed

1.14

EV to Sales

0.58

PEG Ratio

Dividend Yield

ROCE (Latest)

16.76%

ROE (Latest)

7.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

12What is working for the Company

ROCE(HY)

Highest at 8.6%

NET SALES(Q)

At JPY 17,117 MM has Grown at 37.66%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

OPERATING PROFIT(Q)

Highest at JPY 2,281 MM

NET PROFIT(Q)

Highest at JPY 1,525.47 MM

EPS(Q)

Highest at JPY 56.47

-10What is not working for the Company

INTEREST(HY)

At JPY 3 MM has Grown at 50%

RAW MATERIAL COST(Y)

Grown by 16.55% (YoY

CASH AND EQV(HY)

Lowest at JPY 35,911 MM

Here's what is working for Hokuriku Electrical Construction Co., Ltd.

Net Sales

At JPY 17,117 MM has Grown at 37.66%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,281 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Net Profit

Highest at JPY 1,525.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 56.47

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

At JPY 370 MM has Grown at 49.19%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Hokuriku Electrical Construction Co., Ltd.

Interest

At JPY 3 MM has Grown at 50%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 35,911 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 16.55% (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