Ichikawa Co., Ltd. (3513) 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

O-Well Corp.

SHOWA SHINKU CO., LTD.

Kaji Technology Corp.

Daiki Axis Co., Ltd.

Ichikawa Co., Ltd.

Ishikawa Seisakusho, Ltd.

Daido Kogyo Co., Ltd.

Howa Machinery, Ltd.

Taiyo Koki Co., Ltd.

Kawata Mfg. Co., Ltd.

Kitazawa Sangyo Co., Ltd.

Why is Ichikawa Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.48%

The company has been able to generate a Return on Equity (avg) of 3.48% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 96.97

Poor long term growth as Net Sales has grown by an annual rate of 4.20% over the last 5 years

Flat results in Mar 26

INTEREST(9M) At JPY 9 MM has Grown at 28.57%
DEBT-EQUITY RATIO (HY) Highest at -21.94 %
PRE-TAX PROFIT(Q) At JPY 209 MM has Fallen at -41.7%

With ROE of 4.71%, it has a very attractive valuation with a 0.81 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 86.34%, its profits have risen by 11.4% ; the PEG ratio of the company is 1.5
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 Ichikawa Co., 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 Ichikawa Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ichikawa Co., Ltd.

80.64%

1.93

40.99%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.20%

EBIT Growth (5y)

53.27%

EBIT to Interest (avg)

96.97

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.61

Tax Ratio

35.00%

Dividend Payout Ratio

44.08%

Pledged Shares

Institutional Holding

ROCE (avg)

4.92%

ROE (avg)

3.48%

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

0.81

EV to EBIT

10.86

EV to EBITDA

6.21

EV to Capital Employed

0.76

EV to Sales

0.99

PEG Ratio

1.51

Dividend Yield

ROCE (Latest)

6.96%

ROE (Latest)

4.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

7What is working for the Company

ROCE(HY)

Highest at 5.07%

RAW MATERIAL COST(Y)

Fallen by -9.4% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.22 times

DIVIDEND PER SHARE(HY)

Highest at JPY 2.95

NET SALES(Q)

Highest at JPY 3,963 MM

-10What is not working for the Company

INTEREST(9M)

At JPY 9 MM has Grown at 28.57%

DEBT-EQUITY RATIO (HY)

Highest at -21.94 %

PRE-TAX PROFIT(Q)

At JPY 209 MM has Fallen at -41.7%

NET PROFIT(Q)

At JPY 124.78 MM has Fallen at -55.12%

Here's what is working for Ichikawa Co., Ltd.

Net Sales

Highest at JPY 3,963 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 3,963 MM has Grown at 12.16%

over average net sales of the previous four periods of JPY 3,533.5 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 2.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 2.95

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -9.4% (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 Ichikawa Co., Ltd.

Interest

At JPY 9 MM has Grown at 28.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 209 MM has Fallen at -41.7%

over average net sales of the previous four periods of JPY 358.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 124.78 MM has Fallen at -55.12%

over average net sales of the previous four periods of JPY 278.05 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -21.94 % and Grown

In each half year 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