Ichikoh Industries Ltd. (7244) 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

Hi-Lex Corp.

Bando Chemical Industries Ltd.

DaikyoNishikawa Corp.

Nippon Seiki Co., Ltd.

Futaba Industrial Co., Ltd.

Press Kogyo Co., Ltd.

Tachi-S Co., Ltd.

Ichikoh Industries Ltd.

TPR Co., Ltd.

G-Tekt Corp.

Unipres Corp.

Why is Ichikoh Industries Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 34.37

Poor long term growth as Net Sales has grown by an annual rate of -1.11% and Operating profit at -1.08% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

DEBTORS TURNOVER RATIO(HY) Lowest at 2.65 times
INTEREST(Q) Highest at JPY 87 MM

With ROE of 7.86%, it has a very attractive valuation with a 0.50 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 12.11%, its profits have fallen by -19.2%
At the current price, the company has a high dividend yield of 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 12.11% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 41.20%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ichikoh Industries Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Ichikoh Industries Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ichikoh Industries Ltd.

-100.0%

-0.21

36.24%

Japan Nikkei 225

41.2%

1.45

28.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.11%

EBIT Growth (5y)

-1.08%

EBIT to Interest (avg)

34.37

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.96

Tax Ratio

28.90%

Dividend Payout Ratio

27.97%

Pledged Shares

Institutional Holding

ROCE (avg)

9.17%

ROE (avg)

8.99%

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

0.50

EV to EBIT

4.25

EV to EBITDA

1.91

EV to Capital Employed

0.37

EV to Sales

0.17

PEG Ratio

Dividend Yield

0.28%

ROCE (Latest)

8.74%

ROE (Latest)

7.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 2.65

RAW MATERIAL COST(Y)

Fallen by -1.9% (YoY

CASH AND EQV(HY)

Highest at JPY 26,524 MM

NET PROFIT(Q)

Highest at JPY 2,329.18 MM

EPS(Q)

Highest at JPY 24.21

-12What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.65 times

INTEREST(Q)

Highest at JPY 87 MM

Here's what is working for Ichikoh Industries Ltd.

Dividend per share

Highest at JPY 2.65 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

Highest at JPY 2,329.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 24.21

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 26,524 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.9% (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

At JPY 1,724 MM has Grown at 30.9%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Ichikoh Industries Ltd.

Interest

At JPY 87 MM has Grown at 55.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 87 MM

in the last five periods and Increased by 55.36% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 2.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio