Joshin Denki Co., Ltd. (8173) 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

Nojima Corp.

Bell-Park Co., Ltd.

K's Holdings Corp.

Joshin Denki Co., Ltd.

Bic Camera, Inc.

EDION Corp.

Kojima Co., Ltd.

Yamada Holdings Co., Ltd.

Laox Holdings Co., Ltd.

GEO Holdings Corp.

PLAZA HOLDINGS CO., LTD.

Why is Joshin Denki Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -0.60% and Operating profit at -16.31% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -0.60% and Operating profit at -16.31% over the last 5 years

Flat results in Jun 25

PRE-TAX PROFIT(Q) At JPY 786 MM has Fallen at -56.32%
NET PROFIT(Q) At JPY 491.1 MM has Fallen at -52.46%
RAW MATERIAL COST(Y) Grown by 8.3% (YoY)

With ROCE of 2.58%, it has a very attractive valuation with a 0.72 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 15.49%, its profits have fallen by -24%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 15.49% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Joshin Denki 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 Joshin Denki Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Joshin Denki Co., Ltd.

13.76%

0.09

20.30%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.60%

EBIT Growth (5y)

-16.31%

EBIT to Interest (avg)

48.17

Debt to EBITDA (avg)

2.94

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

2.65

Tax Ratio

40.06%

Dividend Payout Ratio

76.28%

Pledged Shares

Institutional Holding

ROCE (avg)

6.66%

ROE (avg)

6.62%

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

0.62

EV to EBIT

27.95

EV to EBITDA

10.84

EV to Capital Employed

0.72

EV to Sales

0.26

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

2.58%

ROE (Latest)

3.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 8,541 MM

DEBT-EQUITY RATIO (HY)

Lowest at 37.25 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.93%

-15What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 786 MM has Fallen at -56.32%

NET PROFIT(Q)

At JPY 491.1 MM has Fallen at -52.46%

RAW MATERIAL COST(Y)

Grown by 8.3% (YoY

INTEREST(Q)

Highest at JPY 85 MM

Here's what is working for Joshin Denki Co., Ltd.

Operating Cash Flow

Highest at JPY 8,541 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Debt-Equity Ratio

Lowest at 37.25 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.93%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Joshin Denki Co., Ltd.

Pre-Tax Profit

At JPY 786 MM has Fallen at -56.32%

over average net sales of the previous four periods of JPY 1,799.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 491.1 MM has Fallen at -52.46%

over average net sales of the previous four periods of JPY 1,033.12 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 85 MM

in the last five periods and Increased by 6.25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 8.3% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales