Kyowa Electronic Instruments Co., Ltd. (6853) 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

Eiwa Corp.

Kyoritsu Electric Corp.

Kyowa Electronic Instruments Co., Ltd.

Nadex Co., Ltd.

Chino Corp.

NAGOYA ELECTRIC WORKS CO., LTD.

Adtec Plasma Technology Co., Ltd.

Shizuki Electric Co., Inc.

Sansha Electric Manufacturing Co., Ltd.

Shikino High-Tech Co., Ltd.

DKK-TOA Corp.

Why is Kyowa Electronic Instruments Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 3.28% and Operating profit at 13.10% over the last 5 years

Positive results in Mar 26

INVENTORY TURNOVER RATIO(HY) Highest at 1.94 times
NET SALES(Q) Highest at JPY 4,653.48 MM
PRE-TAX PROFIT(Q) Highest at JPY 766.69 MM

With ROE of 5.67%, it has a very attractive valuation with a 1.10 Price to Book Value

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 70.15%, its profits have fallen by -3.1%
At the current price, the company has a high dividend yield of 0.1

Consistent Returns over the last 3 years

Along with generating 70.15% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kyowa Electronic Instruments 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 Kyowa Electronic Instruments Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Kyowa Electronic Instruments Co., Ltd.

62.41%

3.19

31.03%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.28%

EBIT Growth (5y)

13.10%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.84

Tax Ratio

27.63%

Dividend Payout Ratio

53.45%

Pledged Shares

Institutional Holding

ROCE (avg)

8.63%

ROE (avg)

4.59%

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

1.10

EV to EBIT

11.61

EV to EBITDA

8.52

EV to Capital Employed

1.13

EV to Sales

0.99

PEG Ratio

Dividend Yield

0.14%

ROCE (Latest)

9.72%

ROE (Latest)

5.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

No Trend

OBV

No Trend

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

9What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 1.94 times

NET SALES(Q)

Highest at JPY 4,653.48 MM

PRE-TAX PROFIT(Q)

Highest at JPY 766.69 MM

NET PROFIT(Q)

Highest at JPY 551.24 MM

EPS(Q)

Highest at JPY 21.75

-4What is not working for the Company

INTEREST(Q)

At JPY 2 MM has Grown at 15.91%

CASH AND EQV(HY)

Lowest at JPY 8,453.39 MM

DEBT-EQUITY RATIO (HY)

Highest at -18.67 %

Here's what is working for Kyowa Electronic Instruments Co., Ltd.

Net Profit

At JPY 551.24 MM has Grown at 113.39%

over average net sales of the previous four periods of JPY 258.33 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 4,653.48 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 4,653.48 MM has Grown at 14.39%

over average net sales of the previous four periods of JPY 4,068.09 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 766.69 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 766.69 MM has Grown at 100.8%

over average net sales of the previous four periods of JPY 381.83 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 551.24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 21.75

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 1.94 times

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 Kyowa Electronic Instruments Co., Ltd.

Interest

At JPY 2 MM has Grown at 15.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 8,453.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -18.67 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio