Placo Co., Ltd. (6347) 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

Nomura Corp.

Tokyo Kikai Seisakusho, Ltd.

Placo Co., Ltd.

Unozawa-Gumi Iron Works, Ltd.

Nitcho Corp.

Fuji Seiki Co., Ltd.

Tokuden Co., Ltd.

CONVUM Ltd.

KLASS Corp.

Takeda Machinery Co., Ltd.

TSUDAKOMA Corp.

Why is Placo Co., Ltd. ?

Weak Long Term Fundamental Strength with a -1.40% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of -1.40% over the last 5 years

With a growth in Net Profit of 191.1%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
ROCE(HY) Highest at 5.09%
RAW MATERIAL COST(Y) Fallen by -0.46% (YoY)
NET SALES(Q) Highest at JPY 985.93 MM

With ROCE of 0.03%, it has a fair valuation with a 1.55 Enterprise value to Capital Employed

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 21.62%, its profits have risen by 81.6%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 21.62% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Placo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Placo Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Placo Co., Ltd.

28.18%

0.30

83.69%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.40%

EBIT Growth (5y)

-70.47%

EBIT to Interest (avg)

12.23

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.01

Tax Ratio

35.79%

Dividend Payout Ratio

68.78%

Pledged Shares

Institutional Holding

ROCE (avg)

7.11%

ROE (avg)

4.75%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.57

EV to EBIT

2534.56

EV to EBITDA

41.66

EV to Capital Employed

1.55

EV to Sales

1.06

PEG Ratio

Dividend Yield

ROCE (Latest)

0.03%

ROE (Latest)

-2.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

33What is working for the Company

ROCE(HY)

Highest at 5.09%

RAW MATERIAL COST(Y)

Fallen by -0.46% (YoY

NET SALES(Q)

Highest at JPY 985.93 MM

OPERATING PROFIT(Q)

Highest at JPY 130.29 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.21 %

PRE-TAX PROFIT(Q)

Highest at JPY 114.94 MM

NET PROFIT(Q)

Highest at JPY 110.9 MM

EPS(Q)

Highest at JPY 11.66

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Pre-Tax Profit

At JPY 114.94 MM has Grown at 687.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 110.9 MM has Grown at 1,178.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 985.93 MM has Grown at 41.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 985.93 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 130.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.21 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 114.94 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 110.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 11.66

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -0.46% (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