Ikuyo Co., Ltd. (7273) 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

Kodama Chemical Industry Co., Ltd.

Ogura Clutch Co., Ltd.

Mitsuchi Corp.

Eidai Kako Co., Ltd.

Ikuyo Co., Ltd.

Kanemitsu Corp.

Nikki Co., Ltd.

Meiwa Industry Co., Ltd.

Sanko Co., Ltd. (Nagano)

HKS Co., Ltd.

FALTEC Co., Ltd.

Why is Ikuyo Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.72

Poor long term growth as Net Sales has grown by an annual rate of 2.54% and Operating profit at -36.49% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At JPY 71.36 MM has Grown at 259.5%
INTEREST COVERAGE RATIO(Q) Lowest at 1,562.86
PRE-TAX PROFIT(Q) At JPY 25.13 MM has Fallen at -98.64%

With ROCE of 0.46%, it has a expensive valuation with a 0.99 Enterprise value to Capital Employed

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 83.97%, its profits have fallen by -98.7%

Market Beating Performance

The stock has generated a return of 83.97% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ikuyo Co., 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 Ikuyo Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ikuyo Co., Ltd.

83.97%

1.74

117.65%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.54%

EBIT Growth (5y)

-36.49%

EBIT to Interest (avg)

13.72

Debt to EBITDA (avg)

0.68

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

1.72

Tax Ratio

13.90%

Dividend Payout Ratio

103.71%

Pledged Shares

Institutional Holding

ROCE (avg)

5.52%

ROE (avg)

5.21%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

1036

Industry P/E

Price to Book Value

0.98

EV to EBIT

214.65

EV to EBITDA

3.99

EV to Capital Employed

0.99

EV to Sales

0.48

PEG Ratio

Dividend Yield

ROCE (Latest)

0.46%

ROE (Latest)

0.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

24What is working for the Company

ROCE(HY)

Highest at 31.17%

NET SALES(Q)

Highest at JPY 8,089.18 MM

RAW MATERIAL COST(Y)

Fallen by -25.32% (YoY

NET PROFIT(9M)

Higher at JPY 3,635.65 MM

CASH AND EQV(HY)

Highest at JPY 10,763.76 MM

-24What is not working for the Company

INTEREST(HY)

At JPY 71.36 MM has Grown at 259.5%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,562.86

PRE-TAX PROFIT(Q)

At JPY 25.13 MM has Fallen at -98.64%

OPERATING PROFIT MARGIN(Q)

Lowest at 6.48 %

NET PROFIT(Q)

Lowest at JPY -22.87 MM

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

Net Sales

Highest at JPY 8,089.18 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 8,089.18 MM has Grown at 36.71%

over average net sales of the previous four periods of JPY 5,917.01 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 10,763.76 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -25.32% (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 Ikuyo Co., Ltd.

Interest

At JPY 71.36 MM has Grown at 259.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,562.86 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 25.13 MM has Fallen at -98.64%

over average net sales of the previous four periods of JPY 1,848.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -22.87 MM has Fallen at -102.46%

over average net sales of the previous four periods of JPY 929.07 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit Margin

Lowest at 6.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY -22.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)