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

New Cosmos Electric Co., Ltd.

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Why is New Cosmos Electric Co., Ltd. ?

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

Healthy long term growth as Operating profit has grown by an annual rate 15.59%

With a growth in Net Profit of 133.96%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at JPY 5,959.98 MM
NET SALES(9M) At JPY 39,105.97 MM has Grown at 19.57%
ROCE(HY) Highest at 10.31%

With ROE of 9.61%, it has a very attractive valuation with a 1.16 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 80.61%, 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 buy?

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

New Cosmos Electric Co., Ltd.

80.61%

2.33

47.05%

Japan Nikkei 225

75.22%

2.67

28.15%

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

30.70%

Dividend Payout Ratio

21.96%

Pledged Shares

Institutional Holding

ROCE (avg)

18.66%

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

1.16

EV to EBIT

6.22

EV to EBITDA

4.89

EV to Capital Employed

1.25

EV to Sales

0.80

PEG Ratio

0.81

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

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 5,959.98 MM

NET SALES(9M)

At JPY 39,105.97 MM has Grown at 19.57%

ROCE(HY)

Highest at 10.31%

DIVIDEND PER SHARE(HY)

Highest at JPY 4.95

PRE-TAX PROFIT(Q)

At JPY 2,013.53 MM has Grown at 176.64%

RAW MATERIAL COST(Y)

Fallen by -16.31% (YoY

CASH AND EQV(HY)

Highest at JPY 45,885.04 MM

DEBT-EQUITY RATIO (HY)

Lowest at -34.19 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.14 times

NET PROFIT(Q)

At JPY 1,195.52 MM has Grown at 133.96%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Operating Cash Flow

Highest at JPY 5,959.98 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit

At JPY 2,013.53 MM has Grown at 176.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Dividend per share

Highest at JPY 4.95 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

At JPY 39,105.97 MM has Grown at 19.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

At JPY 1,195.52 MM has Grown at 133.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 45,885.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -34.19 %

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 2.14 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -16.31% (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

Depreciation

Highest at JPY 494.44 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)