Power Solutions Ltd. (4450) 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

GreenEnergy & Co

Justplanning, Inc.

Power Solutions Ltd.

Decollte Holdings Corp.

Subaru Co., Ltd.

TAC Co., Ltd.

SuRaLa Net Co., Ltd.

VLC HOLDINGS CO., LTD.

INEST, Inc.

TriIs, Inc.

Linkers Corp.

Why is Power Solutions Ltd. ?

High Management Efficiency with a high ROE of 11.77%

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

Healthy long term growth as Net Sales has grown by an annual rate of 24.77% and Operating profit at 53.71%

Flat results in Mar 26

NET PROFIT(HY) At JPY 154.01 MM has Grown at -37.12%
ROCE(HY) Lowest at 10.32%
INTEREST(Q) Highest at JPY 1.11 MM

With ROE of 12.44%, it has a fair valuation with a 1.92 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 41.32%, its profits have risen by 38.5% ; the PEG ratio of the company is 0.5

Underperformed the market in the last 1 year

The stock has generated a return of 41.32% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 81.96%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Power Solutions Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Power Solutions Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Power Solutions Ltd.

-100.0%

0.56

41.56%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.77%

EBIT Growth (5y)

53.71%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.79

Tax Ratio

38.18%

Dividend Payout Ratio

19.61%

Pledged Shares

Institutional Holding

ROCE (avg)

29.37%

ROE (avg)

11.77%

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

1.92

EV to EBIT

7.59

EV to EBITDA

6.49

EV to Capital Employed

2.56

EV to Sales

0.67

PEG Ratio

0.50

Dividend Yield

ROCE (Latest)

33.71%

ROE (Latest)

12.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

6What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -41.52 %

RAW MATERIAL COST(Y)

Fallen by 1.23% (YoY

CASH AND EQV(HY)

Highest at JPY 4,068.52 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 269.52 times

NET SALES(Q)

Highest at JPY 2,287.7 MM

-7What is not working for the Company

NET PROFIT(HY)

At JPY 154.01 MM has Grown at -37.12%

ROCE(HY)

Lowest at 10.32%

INTEREST(Q)

Highest at JPY 1.11 MM

Here's what is working for Power Solutions Ltd.

Debt-Equity Ratio

Lowest at -41.52 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at JPY 2,287.7 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 4,068.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 269.52 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 1.23% (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 37.68 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 37.68 MM has Grown at 25.87%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Power Solutions Ltd.

Interest

At JPY 1.11 MM has Grown at 48.47%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 154.01 MM has Grown at -37.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Interest

Highest at JPY 1.11 MM

in the last five periods and Increased by 48.47% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)