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.

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Nikki Co., Ltd.

HKS Co., Ltd.

Mitsuchi Corp.

Ikuyo Co., Ltd.

Kanemitsu Corp.

Meiwa Industry Co., Ltd.

Sanko Co., Ltd. (Nagano)

FALTEC Co., Ltd.

Why is Ikuyo Co., Ltd. ?

Weak Long Term Fundamental Strength with a 27.85% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.23% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 20.56% and Operating profit at 27.85% over the last 5 years

Negative results in Mar 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
INTEREST(Q) Highest at JPY 47.75 MM
PRE-TAX PROFIT(Q) Lowest at JPY -161.65 MM

With ROCE of 5.04%, it has a very attractive valuation with a 1.45 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 -20.57%, its profits have risen by 1301.7%

Below par performance in long term as well as near term

Along with generating -20.57% 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 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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Ikuyo Co., Ltd.

-25.86%

3.80

48.37%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.56%

EBIT Growth (5y)

27.85%

EBIT to Interest (avg)

20.14

Debt to EBITDA (avg)

0.51

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

1.68

Tax Ratio

43.28%

Dividend Payout Ratio

30.56%

Pledged Shares

Institutional Holding

ROCE (avg)

6.37%

ROE (avg)

5.23%

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

1.41

EV to EBIT

28.79

EV to EBITDA

6.23

EV to Capital Employed

1.45

EV to Sales

0.63

PEG Ratio

Dividend Yield

ROCE (Latest)

5.04%

ROE (Latest)

31.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

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

16What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.35% (YoY

CASH AND EQV(HY)

Highest at JPY 10,899.48 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 14.17 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.19 times

NET SALES(Q)

At JPY 7,834.66 MM has Grown at 14.84%

OPERATING PROFIT(Q)

Highest at JPY 1,040.44 MM

-30What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INTEREST(Q)

Highest at JPY 47.75 MM

PRE-TAX PROFIT(Q)

Lowest at JPY -161.65 MM

NET PROFIT(Q)

Lowest at JPY -153.11 MM

EPS(Q)

Lowest at JPY -6.93

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

Net Sales

At JPY 7,834.66 MM has Grown at 14.84%

over average net sales of the previous four periods of JPY 6,822.02 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,040.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Cash and Eqv

Highest at JPY 10,899.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 14.17 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 6.19 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -6.35% (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 985.32 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 985.32 MM has Grown at 114.67%

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 Ikuyo Co., Ltd.

Pre-Tax Profit

At JPY -161.65 MM has Fallen at -108.68%

over average net sales of the previous four periods of JPY 1,861.9 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -153.11 MM has Fallen at -116.49%

over average net sales of the previous four periods of JPY 928.62 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 47.75 MM has Grown at 42.45%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 47.75 MM

in the last five periods and Increased by 42.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY -161.65 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -153.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -6.93

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)