New Cosmos Electric Co., Ltd. (6824) 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

The Nippon Signal Co., Ltd.

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SECURE, Inc. (Japan)

FTGroup Co. Ltd.

Nohmi Bosai Ltd.

Daido Signal Co., Ltd.

Aiphone Co., Ltd.

New Cosmos Electric Co., Ltd.

Terilogy Holdings Co., Ltd.

Future Innovation Group, Inc.

Fenwal Controls of Japan, Ltd.

Why is New Cosmos Electric Co., Ltd. ?

Strong Long Term Fundamental Strength with a 15.59% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 18.66% signifying high profitability per unit of total capital (equity and debt)

With ROE of 9.61%, 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 58.57%, its profits have risen by 14.8% ; the PEG ratio of the company is 0.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to New Cosmos Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is New Cosmos Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

New Cosmos Electric Co., Ltd.

49.93%

1.97

50.24%

Japan Nikkei 225

57.85%

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)

11.68%

EBIT Growth (5y)

15.59%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.82

Tax Ratio

27.33%

Dividend Payout Ratio

22.36%

Pledged Shares

Institutional Holding

ROCE (avg)

19.45%

ROE (avg)

9.11%

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

5.79

EV to EBITDA

4.55

EV to Capital Employed

1.17

EV to Sales

0.74

PEG Ratio

0.78

Dividend Yield

ROCE (Latest)

20.13%

ROE (Latest)

9.61%

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

Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

4What is working for the Company

ROCE(HY)

Highest at 9.27%

CASH AND EQV(HY)

Highest at JPY 42,718.17 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.12 times

-12What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 16,276.87

RAW MATERIAL COST(Y)

Grown by 10.82% (YoY

NET SALES(Q)

Lowest at JPY 10,810.35 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,193.42 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.04 %

PRE-TAX PROFIT(Q)

Lowest at JPY 985.16 MM

NET PROFIT(Q)

Lowest at JPY 412.18 MM

EPS(Q)

Lowest at JPY 33.87

Here's what is working for New Cosmos Electric Co., Ltd.

Cash and Eqv

Highest at JPY 42,718.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.12 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 New Cosmos Electric Co., Ltd.

Interest Coverage Ratio

Lowest at 16,276.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 412.18 MM has Fallen at -56.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 10,810.35 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 1,193.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 11.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 985.16 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Fallen at -36.24%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 412.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 33.87

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 10.82% (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