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

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Power Solutions Ltd.

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INEST, 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 27.80% and Operating profit at 54.29%

Flat results in Dec 25

OPERATING PROFIT(Q) Lowest at JPY 144.43 MM
OPERATING PROFIT MARGIN(Q) Lowest at 7.02 %
PRE-TAX PROFIT(Q) Lowest at JPY 115.53 MM

With ROE of 10.98%, it has a attractive valuation with a 1.22 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 71.26%, its profits have fallen by -25.5%

Market Beating Performance

The stock has generated a return of 71.26% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%

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, High Return

Absolute

Risk Adjusted

Volatility

Power Solutions Ltd.

71.26%

1.22

39.63%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.80%

EBIT Growth (5y)

54.29%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.71

Tax Ratio

38.18%

Dividend Payout Ratio

19.47%

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

1.22

EV to EBIT

4.75

EV to EBITDA

4.03

EV to Capital Employed

1.32

EV to Sales

0.40

PEG Ratio

Dividend Yield

ROCE (Latest)

27.88%

ROE (Latest)

10.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bearish

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

7What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 57.39%

RAW MATERIAL COST(Y)

Fallen by -1.48% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -40.73 %

DIVIDEND PER SHARE(HY)

Highest at JPY 5.37

NET SALES(Q)

Highest at JPY 2,057.83 MM

-7What is not working for the Company

OPERATING PROFIT(Q)

Lowest at JPY 144.43 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.02 %

PRE-TAX PROFIT(Q)

Lowest at JPY 115.53 MM

NET PROFIT(Q)

Lowest at JPY 69.13 MM

EPS(Q)

Lowest at JPY 20.82

Here's what is working for Power Solutions Ltd.

Net Sales

Highest at JPY 2,057.83 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debt-Equity Ratio

Lowest at -40.73 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at JPY 5.37

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 57.39%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.48% (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 Power Solutions Ltd.

Operating Profit

Lowest at JPY 144.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 115.53 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Fallen at -32.88%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 69.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -41.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 20.82

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)