Horiba Ltd. (6856) 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

Miura Co., Ltd.

Horiba Ltd.

Sumitomo Heavy Industries, Ltd.

Ebara Corp.

NOK Corp.

SCREEN Holdings Co. Ltd.

MISUMI Group, Inc.

THK CO., LTD.

AMADA Co., Ltd.

IHI Corp.

SUMCO Corp.

Why is Horiba Ltd. ?

High Management Efficiency with a high ROE of 12.06%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 55.93

Healthy long term growth as Net Sales has grown by an annual rate of 9.80%

With ROE of 11.62%, it has a very attractive valuation with a 1.50 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 82.01%, its profits have risen by 2.7% ; the PEG ratio of the company is 3.8
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 82.01% 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 buy?

Overall Portfolio exposure to Horiba Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Horiba Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Horiba Ltd.

82.01%

1.37

37.30%

Japan Nikkei 225

45.96%

1.66

27.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.80%

EBIT Growth (5y)

19.70%

EBIT to Interest (avg)

55.93

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.85

Tax Ratio

30.96%

Dividend Payout Ratio

30.65%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

21.55%

ROE (avg)

12.06%

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

1.50

EV to EBIT

7.43

EV to EBITDA

5.89

EV to Capital Employed

1.69

EV to Sales

1.17

PEG Ratio

3.78

Dividend Yield

0.02%

ROCE (Latest)

22.75%

ROE (Latest)

11.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

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

9What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 67.86%

RAW MATERIAL COST(Y)

Fallen by -5.23% (YoY

CASH AND EQV(HY)

Highest at JPY 320,512 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.94 times

NET SALES(Q)

Highest at JPY 102,836 MM

OPERATING PROFIT(Q)

Highest at JPY 23,246 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.6 %

PRE-TAX PROFIT(Q)

Highest at JPY 19,700 MM

NET PROFIT(Q)

Highest at JPY 14,706.12 MM

-5What is not working for the Company

ROCE(HY)

Lowest at 11.18%

INTEREST(Q)

At JPY 234 MM has Grown at 14.71%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.15 times

Here's what is working for Horiba Ltd.

Net Sales

Highest at JPY 102,836 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 23,246 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 22.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 19,700 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 14,706.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 320,512 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.94 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 67.86%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -5.23% (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

Depreciation

Highest at JPY 3,772 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 Horiba Ltd.

Interest

At JPY 234 MM has Grown at 14.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 4.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio