IRISO Electronics Co., Ltd. (6908) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hosiden Corp.

HIROSE ELECTRIC CO., LTD.

Citizen Watch Co., Ltd.

Nichicon Corp.

IRISO Electronics Co., Ltd.

Japan Aviation Electronics Industry Ltd.

Taiyo Yuden Co., Ltd.

IBIDEN Co., Ltd.

Shinko Electric Industries Co., Ltd.

Hamamatsu Photonics KK

Japan Display, Inc.

Why is IRISO Electronics Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 85.17

Poor long term growth as Operating profit has grown by an annual rate 2.78% of over the last 5 years

Negative results in Jun 25

NET PROFIT(Q) At JPY 507.32 MM has Fallen at -56.49%
INTEREST(HY) At JPY 80 MM has Grown at 5.26%
ROCE(HY) Lowest at 3.87%

With ROE of 6.25%, it has a very attractive valuation with a 0.91 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 18.21%, its profits have fallen by -25%

Underperformed the market in the last 1 year

The stock has generated a return of 18.21% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to IRISO Electronics Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is IRISO Electronics Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

IRISO Electronics Co., Ltd.

18.21%

0.21

32.52%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.30%

EBIT Growth (5y)

2.78%

EBIT to Interest (avg)

85.17

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.69

Tax Ratio

25.09%

Dividend Payout Ratio

84.58%

Pledged Shares

Institutional Holding

0.16%

ROCE (avg)

10.02%

ROE (avg)

6.78%

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

0.91

EV to EBIT

9.23

EV to EBITDA

3.94

EV to Capital Employed

0.88

EV to Sales

0.87

PEG Ratio

Dividend Yield

ROCE (Latest)

9.54%

ROE (Latest)

6.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.36% (YoY

NET PROFIT(9M)

Higher at JPY 3,931.29 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.15%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.16%

NET SALES(Q)

Highest at JPY 15,163 MM

-11What is not working for the Company

NET PROFIT(Q)

At JPY 507.32 MM has Fallen at -56.49%

INTEREST(HY)

At JPY 80 MM has Grown at 5.26%

ROCE(HY)

Lowest at 3.87%

DEBT-EQUITY RATIO (HY)

Highest at -18.14 %

Here's what is working for IRISO Electronics Co., Ltd.

Net Sales

Highest at JPY 15,163 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 3.15%

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 4.16%

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 -7.36% (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 IRISO Electronics Co., Ltd.

Net Profit

At JPY 507.32 MM has Fallen at -56.49%

over average net sales of the previous four periods of JPY 1,165.9 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 80 MM has Grown at 5.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -18.14 %

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