JVCKenwood Corp. (6632) 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

Bridgestone Corp.

Sumitomo Rubber Industries, Ltd.

The Yokohama Rubber Co., Ltd.

Toyo Tire Corp.

TS TECH CO., LTD.

JVCKenwood Corp.

Why is JVCKenwood Corp. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.08% over the last 5 years
The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.08% over the last 5 years

INTEREST(HY) At JPY 937 MM has Grown at 29.24%
ROCE(HY) Lowest at 10.62%
INTEREST COVERAGE RATIO(Q) Lowest at 1,493.29

Below par performance in long term as well as near term

Along with generating -23.23% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is JVCKenwood Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

JVCKenwood Corp.

-23.23%

0.13

42.23%

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)

6.08%

EBIT Growth (5y)

49.37%

EBIT to Interest (avg)

12.97

Debt to EBITDA (avg)

0.34

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.97

Tax Ratio

23.36%

Dividend Payout Ratio

15.62%

Pledged Shares

Institutional Holding

ROCE (avg)

14.24%

ROE (avg)

12.98%

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

1.24

EV to EBIT

9.08

EV to EBITDA

4.86

EV to Capital Employed

1.23

EV to Sales

0.51

PEG Ratio

Dividend Yield

ROCE (Latest)

13.57%

ROE (Latest)

13.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

CASH AND EQV(HY)

Highest at JPY 134,919 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.01 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.25 times

-26What is not working for the Company

INTEREST(HY)

At JPY 937 MM has Grown at 29.24%

ROCE(HY)

Lowest at 10.62%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,493.29

RAW MATERIAL COST(Y)

Grown by 8.42% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 7,123 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.02 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,330 MM

NET PROFIT(Q)

Lowest at JPY 990 MM

EPS(Q)

Lowest at JPY 6.8

Here's what is working for JVCKenwood Corp.

Cash and Eqv

Highest at JPY 134,919 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.01 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 5.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 5,115 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for JVCKenwood Corp.

Interest

At JPY 937 MM has Grown at 29.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 1,330 MM has Fallen at -69.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 990 MM has Fallen at -71.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 1,493.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 7,123 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 1,330 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 990 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 6.8

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 8.42% (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