ScoreWhy is Howa Machinery, Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 4.09% over the last 5 years
- NET PROFIT(HY) At JPY 243.68 MM has Grown at -67.65%
- INTEREST(HY) At JPY 27 MM has Grown at 42.11%
- NET SALES(Q) Lowest at JPY 5,037 MM
2
Underperformed the market in the last 1 year
- The stock has generated a return of 14.23% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
Real-Time Research ReportHow 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 Howa Machinery, Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Howa Machinery, Ltd.
14.23%
1.35
63.64%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.09%
EBIT Growth (5y)
10.05%
EBIT to Interest (avg)
42.52
Debt to EBITDA (avg)
1.17
Net Debt to Equity (avg)
0.26
Sales to Capital Employed (avg)
0.90
Tax Ratio
37.89%
Dividend Payout Ratio
32.20%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.91%
ROE (avg)
4.12%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
0.73
EV to EBIT
14.87
EV to EBITDA
10.75
EV to Capital Employed
0.79
EV to Sales
0.75
PEG Ratio
0.07
Dividend Yield
0.05%
ROCE (Latest)
5.30%
ROE (Latest)
4.97%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -21.73% (YoY
OPERATING PROFIT MARGIN(Q)
Highest at 11.48 %
PRE-TAX PROFIT(Q)
Highest at JPY 529 MM
NET PROFIT(Q)
Highest at JPY 450.68 MM
EPS(Q)
Highest at JPY 36.7
-18What is not working for the Company
NET PROFIT(HY)
At JPY 243.68 MM has Grown at -67.65%
INTEREST(HY)
At JPY 27 MM has Grown at 42.11%
NET SALES(Q)
Lowest at JPY 5,037 MM
Here's what is working for Howa Machinery, Ltd.
Operating Profit Margin
Highest at 11.48 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 529 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 450.68 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 36.7
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -21.73% (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 150 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Howa Machinery, Ltd.
Interest
At JPY 27 MM has Grown at 42.11%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
At JPY 5,037 MM has Fallen at -13.9%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Net Sales
Lowest at JPY 5,037 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Non Operating Income
Highest at JPY 0.22 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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