Newtech Co., Ltd. (6734) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Wacom Co., Ltd.

Newtech Co., Ltd.

Sato Holdings Corp.

AIMECHATEC Ltd.

Innotech Corp.

Melco Holdings, Inc.

EBRAINS, Inc. (Japan)

Helios Techno Holding Co., Ltd.

EIZO Corp.

Riso Kagaku Corp.

Nippon Primex Inc.

Why is Newtech Co., Ltd. ?

High Management Efficiency with a high ROE of 12.27%

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

Positive results in May 25

NET SALES(Q) At JPY 1,443.54 MM has Grown at 104.53%
PRE-TAX PROFIT(Q) At JPY 96.41 MM has Grown at 315.64%
NET PROFIT(Q) At JPY 70.51 MM has Grown at 325.21%

With ROE of 9.89%, it has a very attractive valuation with a 1.25 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 65.20%, its profits have fallen by -8.6%

Market Beating Performance

The stock has generated a return of 65.20% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 38.59%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Newtech 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

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.46%

EBIT Growth (5y)

0.21%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.05

Sales to Capital Employed (avg)

1.64

Tax Ratio

27.91%

Dividend Payout Ratio

36.05%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

12.27%

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

1.25

EV to EBIT

1.51

EV to EBITDA

1.44

EV to Capital Employed

-3.99

EV to Sales

0.12

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

9.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

No Trend

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

20What is working for the Company

NET SALES(Q)

At JPY 1,443.54 MM has Grown at 104.53%

PRE-TAX PROFIT(Q)

At JPY 96.41 MM has Grown at 315.64%

NET PROFIT(Q)

At JPY 70.51 MM has Grown at 325.21%

CASH AND EQV(HY)

Highest at JPY 6,142.38 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.78%

DEBTORS TURNOVER RATIO(HY)

Highest at 11.19%

-9What is not working for the Company

INTEREST(HY)

At JPY 0.48 MM has Grown at 108.19%

RAW MATERIAL COST(Y)

Grown by 25.27% (YoY

Here's what is working for Newtech Co., Ltd.

Net Sales

At JPY 1,443.54 MM has Grown at 104.53%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 96.41 MM has Grown at 315.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 70.51 MM has Grown at 325.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 6,142.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 7.78%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 11.19%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Newtech Co., Ltd.

Interest

At JPY 0.48 MM has Grown at 108.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 25.27% (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