Iwaki Co. Ltd. (6237) 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

ANEST IWATA Corp.

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Iwaki Co. Ltd.

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Asahi Diamond Industrial Co., Ltd.

Tazmo Co., Ltd.

Roland DG Corp.

Why is Iwaki Co. Ltd. ?

Weak Long Term Fundamental Strength with a 29.34% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 29.34% of over the last 5 years

Negative results in Mar 26

INTEREST(HY) At JPY 48.85 MM has Grown at 21.07%
ROCE(HY) Lowest at 12.2%
DIVIDEND PAYOUT RATIO(Y) Lowest at 79.63%

With ROE of 11.50%, it has a attractive valuation with a 1.86 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 105.26%, its profits have fallen by -5.1%

Market Beating performance in long term as well as near term

Along with generating 105.26% returns in the last 1 year, the stock has outperformed 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 Iwaki 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 Iwaki Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Iwaki Co. Ltd.

105.26%

2.83

42.32%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.00%

EBIT Growth (5y)

29.34%

EBIT to Interest (avg)

75.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

1.16

Tax Ratio

27.26%

Dividend Payout Ratio

35.30%

Pledged Shares

Institutional Holding

ROCE (avg)

15.65%

ROE (avg)

11.08%

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

1.86

EV to EBIT

12.00

EV to EBITDA

9.38

EV to Capital Employed

1.99

EV to Sales

1.45

PEG Ratio

Dividend Yield

ROCE (Latest)

16.60%

ROE (Latest)

11.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.06% (YoY

CASH AND EQV(HY)

Highest at JPY 19,087.67 MM

NET SALES(Q)

Highest at JPY 12,956.22 MM

-11What is not working for the Company

INTEREST(HY)

At JPY 48.85 MM has Grown at 21.07%

ROCE(HY)

Lowest at 12.2%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 79.63%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.54 times

Here's what is working for Iwaki Co. Ltd.

Net Sales

Highest at JPY 12,956.22 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 19,087.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.06% (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 464.84 MM has Grown at 28.75%

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 Iwaki Co. Ltd.

Interest

At JPY 48.85 MM has Grown at 21.07%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 3.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 79.63%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)