Press Kogyo Co., Ltd. (7246) 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

KYB Corp.

EXEDY Corp.

F.C.C. Co., Ltd.

Press Kogyo Co., Ltd.

Aisan Industry Co., Ltd.

Mitsuboshi Belting Ltd.

Topre Corp.

Pacific Industrial Co., Ltd.

Musashi Seimitsu Industry Co., Ltd.

G-Tekt Corp.

PIOLAX, Inc.

Why is Press Kogyo Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 41.88

Poor long term growth as Net Sales has grown by an annual rate of -1.55% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 175 MM has Grown at 11.46%
DEBT-EQUITY RATIO (HY) Highest at -9.63 %
INVENTORY TURNOVER RATIO(HY) Lowest at 9.7 times

With ROE of 6.58%, it has a very attractive valuation with a 0.49 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 38.59%, its profits have fallen by -27.3%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Press Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Press Kogyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Press Kogyo Co., Ltd.

38.59%

1.01

30.14%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.55%

EBIT Growth (5y)

5.27%

EBIT to Interest (avg)

41.88

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.64

Tax Ratio

27.58%

Dividend Payout Ratio

52.47%

Pledged Shares

Institutional Holding

0.25%

ROCE (avg)

11.98%

ROE (avg)

8.14%

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

0.49

EV to EBIT

4.12

EV to EBITDA

1.72

EV to Capital Employed

0.41

EV to Sales

0.21

PEG Ratio

Dividend Yield

0.10%

ROCE (Latest)

9.89%

ROE (Latest)

6.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

12What is working for the Company

PRE-TAX PROFIT(Q)

Highest at JPY 4,009 MM

RAW MATERIAL COST(Y)

Fallen by -12.08% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.73 times

OPERATING PROFIT(Q)

Highest at JPY 6,562 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.34 %

NET PROFIT(Q)

Highest at JPY 2,561 MM

EPS(Q)

Highest at JPY 25.93

-7What is not working for the Company

INTEREST(HY)

At JPY 175 MM has Grown at 11.46%

DEBT-EQUITY RATIO (HY)

Highest at -9.63 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.7 times

Here's what is working for Press Kogyo Co., Ltd.

Pre-Tax Profit

Highest at JPY 4,009 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Operating Profit

Highest at JPY 6,562 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.34 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 4,009 MM has Grown at 55.21%

over average net sales of the previous four periods of JPY 2,583 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 2,561 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 2,561 MM has Grown at 74.24%

over average net sales of the previous four periods of JPY 1,469.81 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 25.93

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 4.73 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -12.08% (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 Press Kogyo Co., Ltd.

Interest

At JPY 175 MM has Grown at 11.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -9.63 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 9.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio