Kyosan Electric Manufacturing Co., Ltd. (6742) 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

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Espec Corp.

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Kyosan Electric Manufacturing Co., Ltd.

Oki Electric Industry Co., Ltd.

Abalance Corp.

Why is Kyosan Electric Manufacturing 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 3.23% and Operating profit at 14.96% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.34% signifying low profitability per unit of shareholders funds

Flat results in Jun 25

INTEREST(HY) At JPY 182 MM has Grown at 37.88%
RAW MATERIAL COST(Y) Grown by 8.36% (YoY)
OPERATING PROFIT(Q) Lowest at JPY -1,194 MM

With ROCE of 7.99%, it has a very attractive valuation with a 0.73 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 8.53%, its profits have risen by 42.8% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 8.53% 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 Kyosan Electric Manufacturing 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 Kyosan Electric Manufacturing Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kyosan Electric Manufacturing Co., Ltd.

7.09%

-0.34

24.90%

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)

3.23%

EBIT Growth (5y)

14.96%

EBIT to Interest (avg)

10.82

Debt to EBITDA (avg)

5.52

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.91

Tax Ratio

30.23%

Dividend Payout Ratio

30.16%

Pledged Shares

Institutional Holding

ROCE (avg)

4.22%

ROE (avg)

7.34%

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

0.60

EV to EBIT

9.16

EV to EBITDA

6.97

EV to Capital Employed

0.73

EV to Sales

0.66

PEG Ratio

0.16

Dividend Yield

0.10%

ROCE (Latest)

7.99%

ROE (Latest)

8.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly 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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 3,237 MM

ROCE(HY)

Highest at 10.48%

NET PROFIT(9M)

Higher at JPY 4,406.18 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.13%

NET SALES(Q)

At JPY 12,251 MM has Grown at 24.91%

-11What is not working for the Company

INTEREST(HY)

At JPY 182 MM has Grown at 37.88%

RAW MATERIAL COST(Y)

Grown by 8.36% (YoY

OPERATING PROFIT(Q)

Lowest at JPY -1,194 MM

PRE-TAX PROFIT(Q)

Lowest at JPY -1,329 MM

Here's what is working for Kyosan Electric Manufacturing Co., Ltd.

Net Profit

At JPY 4,406.18 MM has Grown at 53.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 3,237 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

At JPY 12,251 MM has Grown at 24.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 5.13%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at JPY 4,406.18 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Here's what is not working for Kyosan Electric Manufacturing Co., Ltd.

Interest

At JPY 182 MM has Grown at 37.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -1,194 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY -1,329 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Raw Material Cost

Grown by 8.36% (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