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

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Kyowa Electronic Instruments Co., Ltd.

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Why is Kyowa Electronic Instruments Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.59%

The company has been able to generate a Return on Equity (avg) of 4.59% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 8.25% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.59% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.13% and Operating profit at 8.25% over the last 5 years

With a fall in Net Sales of -27.5%, the company declared Very Negative results in Jun 26

ROCE(HY) Lowest at 5.38%
DEBT-EQUITY RATIO (HY) Highest at -20.05 %
INTEREST COVERAGE RATIO(Q) Lowest at 902.36

With ROE of 6.03%, it has a very attractive valuation with a 1.24 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 17.63%, its profits have risen by 2.9% ; the PEG ratio of the company is 2
At the current price, the company has a high dividend yield of 0.1

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.

19.6%

2.30

31.31%

Japan Nikkei 225

58.07%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.13%

EBIT Growth (5y)

8.25%

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

30.60%

Dividend Payout Ratio

53.45%

Pledged Shares

Institutional Holding

ROCE (avg)

8.84%

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

1.24

EV to EBIT

14.62

EV to EBITDA

10.54

EV to Capital Employed

1.31

EV to Sales

1.17

PEG Ratio

2.03

Dividend Yield

0.12%

ROCE (Latest)

8.94%

ROE (Latest)

6.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.72% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.06 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.06

-25What is not working for the Company

ROCE(HY)

Lowest at 5.38%

DEBT-EQUITY RATIO (HY)

Highest at -20.05 %

INTEREST COVERAGE RATIO(Q)

Lowest at 902.36

CASH AND EQV(HY)

Lowest at JPY 8,773.26 MM

NET SALES(Q)

Lowest at JPY 3,373.78 MM

INTEREST(Q)

Highest at JPY 2.24 MM

OPERATING PROFIT(Q)

Lowest at JPY 20.25 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.6 %

PRE-TAX PROFIT(Q)

Lowest at JPY -48.54 MM

NET PROFIT(Q)

Lowest at JPY -44.81 MM

EPS(Q)

Lowest at JPY -1.78

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

Debtors Turnover Ratio

Highest at 4.06 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 4.06

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 1.72% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Kyowa Electronic Instruments Co., Ltd.

Net Sales

At JPY 3,373.78 MM has Fallen at -17.79%

over average net sales of the previous four periods of JPY 4,103.75 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -48.54 MM has Fallen at -112.17%

over average net sales of the previous four periods of JPY 398.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -44.81 MM has Fallen at -116.18%

over average net sales of the previous four periods of JPY 276.87 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 2.24 MM has Grown at 11.98%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 902.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -20.05 % and Grown

In each half year 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

Net Sales

Lowest at JPY 3,373.78 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 2.24 MM

in the last five periods and Increased by 11.98% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 20.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 0.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -48.54 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 -44.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -1.78

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 8,773.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents