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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Espec Corp.

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Kyosan Electric Manufacturing Co., Ltd.

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IDEC Corp.

A&D Holon Holdings Co., Ltd.

Abalance Corp.

Why is Kyosan Electric Manufacturing Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.22%

The company has been able to generate a Return on Capital Employed (avg) of 4.22% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 3.33% and Operating profit at 8.55% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.34% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.33% and Operating profit at 8.55% over the last 5 years

Flat results in Mar 26

RAW MATERIAL COST(Y) Grown by 23.12% (YoY)
INTEREST(Q) Highest at JPY 149 MM

With ROCE of 6.85%, it has a very attractive valuation with a 1.11 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 78.38%, its profits have risen by 20.6% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kyosan Electric Manufacturing Co., Ltd.

78.38%

1.05

42.40%

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)

3.33%

EBIT Growth (5y)

8.55%

EBIT to Interest (avg)

11.81

Debt to EBITDA (avg)

4.31

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.93

Tax Ratio

25.00%

Dividend Payout Ratio

30.72%

Pledged Shares

Institutional Holding

ROCE (avg)

5.00%

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

1.18

EV to EBIT

16.16

EV to EBITDA

12.14

EV to Capital Employed

1.11

EV to Sales

1.05

PEG Ratio

0.63

Dividend Yield

ROCE (Latest)

6.85%

ROE (Latest)

9.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

Mildly Bearish

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

9What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 44.45 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.64 times

DIVIDEND PER SHARE(HY)

Highest at JPY 3

NET SALES(Q)

Highest at JPY 43,749 MM

NET PROFIT(Q)

Highest at JPY 4,780 MM

EPS(Q)

Highest at JPY 77.44

-12What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 23.12% (YoY

INTEREST(Q)

Highest at JPY 149 MM

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

Net Sales

Highest at JPY 43,749 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 4,780 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 77.44

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 44.45 %

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 1.64 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 3

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

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

Interest

At JPY 149 MM has Grown at 26.27%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 149 MM

in the last five periods and Increased by 26.27% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 23.12% (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