Kokusai Electric Corp. () 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

Kokusai Electric Corp.

Why is Kokusai Electric Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.90% and Operating profit at -10.59% over the last 5 years

Flat results in Jun 25

INTEREST(HY) At JPY 1,060 MM has Grown at 60.12%
NET SALES(Q) At JPY 51,789 MM has Fallen at -20.6%
PRE-TAX PROFIT(Q) Lowest at JPY 9,322 MM

With ROE of 18.35%, it has a Does not qualify valuation with a 3.62 Price to Book Value

Over the past year, while the stock has generated a return of 117.32%, its profits have risen by 61% ; the PEG ratio of the company is 0.3

Market Beating Performance

The stock has generated a return of 117.32% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 27.57%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kokusai Electric Corp. 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 Kokusai Electric Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kokusai Electric Corp.

117.32%

0.08

68.53%

Japan Nikkei 225

27.57%

1.07

25.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.90%

EBIT Growth (5y)

-10.59%

EBIT to Interest (avg)

57.45

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.81

Tax Ratio

29.11%

Dividend Payout Ratio

23.93%

Pledged Shares

Institutional Holding

ROCE (avg)

26.29%

ROE (avg)

18.45%

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

3.62

EV to EBIT

14.12

EV to EBITDA

11.33

EV to Capital Employed

3.44

EV to Sales

3.03

PEG Ratio

0.34

Dividend Yield

ROCE (Latest)

24.37%

ROE (Latest)

18.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 39,327 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.53%

-15What is not working for the Company

INTEREST(HY)

At JPY 1,060 MM has Grown at 60.12%

NET SALES(Q)

At JPY 51,789 MM has Fallen at -20.6%

PRE-TAX PROFIT(Q)

Lowest at JPY 9,322 MM

NET PROFIT(Q)

Fallen at -49.06%

Here's what is working for Kokusai Electric Corp.

Operating Cash Flow

Highest at JPY 39,327 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Inventory Turnover Ratio

Highest at 1.53%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 3,417 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 Kokusai Electric Corp.

Interest

At JPY 1,060 MM has Grown at 60.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 51,789 MM has Fallen at -20.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 9,322 MM has Fallen at -47.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 9,322 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -49.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)