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

ASAHI KOGYOSHA CO., LTD.

DAI-DAN Co., Ltd.

Kawada Technologies, Inc.

Fudo Tetra Corp.

Hokuriku Electrical Construction Co., Ltd.

Techno Ryowa Ltd.

NIPPON RIETEC CO., LTD.

Daiichi Kensetsu Corp.

Tekken Corp.

Tokyo Energy & Systems, Inc.

Meiko Construction Co., Ltd.

Why is Hokuriku Electrical Construction Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.99%

The company has been able to generate a Return on Equity (avg) of 5.99% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 2.45% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.99% signifying low profitability per unit of shareholders funds

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 Jun 26

ROCE(HY) Highest at 9.22%
RAW MATERIAL COST(Y) Fallen by -12.72% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 5.03 times

With ROE of 7.85%, it has a very attractive valuation with a 1.11 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 2.40%, its profits have fallen by -5.7%
At the current price, the company has a high dividend yield of 0

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.

3.56%

506.17

35.34%

Japan Nikkei 225

60.14%

2.04

29.37%

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)

1.30

Tax Ratio

28.91%

Dividend Payout Ratio

34.35%

Pledged Shares

Institutional Holding

ROCE (avg)

16.93%

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

1.11

EV to EBIT

7.01

EV to EBITDA

5.55

EV to Capital Employed

1.17

EV to Sales

0.60

PEG Ratio

Dividend Yield

ROCE (Latest)

16.76%

ROE (Latest)

7.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

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 9.22%

RAW MATERIAL COST(Y)

Fallen by -12.72% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.03 times

NET SALES(Q)

At JPY 14,321 MM has Grown at 18.64%

PRE-TAX PROFIT(Q)

At JPY 892 MM has Grown at 87.39%

NET PROFIT(Q)

At JPY 578 MM has Grown at 88.95%

-5What is not working for the Company

INTEREST(9M)

At JPY 4 MM has Grown at 33.33%

CASH AND EQV(HY)

Lowest at JPY 40,467 MM

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

Net Sales

At JPY 14,321 MM has Grown at 18.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 892 MM has Grown at 87.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 578 MM has Grown at 88.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 5.03 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 -12.72% (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 Electrical Construction Co., Ltd.

Interest

At JPY 4 MM has Grown at 33.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 40,467 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents