Hosokawa Micron Corp. (6277) 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

Nissei ASB Machine Co., Ltd.

Union Tool Co.

Nikkiso Co., Ltd.

Aida Engineering Ltd.

RS Technologies Co. Ltd.

ASAHI YUKIZAI Corp.

Furukawa Co., Ltd.

Shibuya Corp.

DAIWA INDUSTRIES LTD.

Hosokawa Micron Corp.

Chofu Seisakusho Co., Ltd.

Why is Hosokawa Micron Corp. ?

Weak Long Term Fundamental Strength with a -0.74% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate -0.74% of over the last 5 years

The company has declared negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at 4.51%
INTEREST(Q) At JPY 30 MM has Grown at 400%
PRE-TAX PROFIT(Q) At JPY 1,257 MM has Fallen at -45.23%

With ROE of 4.68%, it has a expensive valuation with a 1.14 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 -3.33%, its profits have fallen by -45.4%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -3.33% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hosokawa Micron Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hosokawa Micron Corp.

-3.33%

0.74

34.16%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.82%

EBIT Growth (5y)

-0.74%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

1.24

Tax Ratio

38.59%

Dividend Payout Ratio

39.21%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

20.51%

ROE (avg)

9.54%

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

1.14

EV to EBIT

9.98

EV to EBITDA

6.72

EV to Capital Employed

1.23

EV to Sales

0.66

PEG Ratio

Dividend Yield

ROCE (Latest)

12.30%

ROE (Latest)

4.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 3.96

DIVIDEND PAYOUT RATIO(Y)

Highest at 89.76%

CASH AND EQV(HY)

Highest at JPY 59,633 MM

NET SALES(Q)

Highest at JPY 21,404 MM

-25What is not working for the Company

ROCE(HY)

Lowest at 4.51%

INTEREST(Q)

At JPY 30 MM has Grown at 400%

PRE-TAX PROFIT(Q)

At JPY 1,257 MM has Fallen at -45.23%

RAW MATERIAL COST(Y)

Grown by 10.23% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -39.39 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.86 times

NET PROFIT(Q)

Fallen at -40.6%

Here's what is working for Hosokawa Micron Corp.

Dividend per share

Highest at JPY 3.96 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 21,404 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 59,633 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 89.76%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 684 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 Hosokawa Micron Corp.

Interest

At JPY 30 MM has Grown at 400%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 1,257 MM has Fallen at -45.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -40.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -39.39 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 3.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 10.23% (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