Powdertech Co., Ltd. (5695) 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

Hirata Corp.

Foster Electric Company, Limited

Doshisha Co., Ltd.

Tamron Co., Ltd.

Zojirushi Corp.

Yokowo Co. Ltd.

Powdertech Co., Ltd.

Airtech Japan, Ltd.

JANOME Corp.

Ushio, Inc.

YA-MAN Ltd.

Why is Powdertech Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.39%

The company has been able to generate a Return on Equity (avg) of 3.39% signifying low profitability per unit of shareholders funds

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

Poor long term growth as Net Sales has grown by an annual rate of -3.04% and Operating profit at -24.48% over the last 5 years

Flat results in Jun 25

INTEREST(9M) At JPY 11.32 MM has Grown at 8,412.03%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.25%
INTEREST COVERAGE RATIO(Q) Lowest at 7,258.58

With ROE of 2.43%, it has a very attractive valuation with a 0.48 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 10.58%, its profits have risen by 5.7% ; the PEG ratio of the company is 3.5
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 10.58% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Powdertech 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 Powdertech Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Powdertech Co., Ltd.

10.58%

0.07

17.44%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.04%

EBIT Growth (5y)

-24.48%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.69

Tax Ratio

14.35%

Dividend Payout Ratio

91.11%

Pledged Shares

Institutional Holding

ROCE (avg)

6.26%

ROE (avg)

3.39%

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

0.48

EV to EBIT

17.07

EV to EBITDA

5.29

EV to Capital Employed

0.46

EV to Sales

0.62

PEG Ratio

3.46

Dividend Yield

0.02%

ROCE (Latest)

2.68%

ROE (Latest)

2.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly 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

RAW MATERIAL COST(Y)

Fallen by -6.06% (YoY

NET PROFIT(9M)

Higher at JPY 287.91 MM

-12What is not working for the Company

INTEREST(9M)

At JPY 11.32 MM has Grown at 8,412.03%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.25%

INTEREST COVERAGE RATIO(Q)

Lowest at 7,258.58

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

Net Profit

At JPY 287.91 MM has Grown at 59.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

Higher at JPY 287.91 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -6.06% (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 Powdertech Co., Ltd.

Interest

At JPY 7.51 MM has Grown at 13,077.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 7,258.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 3.25% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio