Punch Industry Co., Ltd. (6165) 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

Seikoh Giken Co., Ltd.

Dainichi Co., Ltd.

Punch Industry Co., Ltd.

Fujimak Corp.

Abist Co., Ltd.

OVAL Corp.

Nakakita Seisakusho Co., Ltd.

Yoshitake Inc

Micron Machinery Co., Ltd.

Tacmina Corp.

Suzumo Machinery Co., Ltd.

Why is Punch Industry Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 36.92

Flat results in Dec 25

NET PROFIT(Q) At JPY 160.86 MM has Fallen at -48.45%
INTEREST(Q) Highest at JPY 9 MM
EPS(Q) Lowest at JPY 2.76

With ROE of 4.23%, it has a very attractive valuation with a 0.46 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 17.10%, its profits have risen by 60.2% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 17.10% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 40.96%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Punch Industry 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 Punch Industry Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Punch Industry Co., Ltd.

-100.0%

0.25

33.56%

Japan Nikkei 225

40.96%

1.44

28.42%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.92%

EBIT Growth (5y)

15.08%

EBIT to Interest (avg)

36.92

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

1.73

Tax Ratio

41.38%

Dividend Payout Ratio

58.16%

Pledged Shares

Institutional Holding

ROCE (avg)

12.70%

ROE (avg)

7.36%

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

0.46

EV to EBIT

3.98

EV to EBITDA

2.31

EV to Capital Employed

0.36

EV to Sales

0.16

PEG Ratio

0.25

Dividend Yield

ROCE (Latest)

9.06%

ROE (Latest)

4.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

7What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 6.94 times

RAW MATERIAL COST(Y)

Fallen by -3.61% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -14.19 %

NET SALES(Q)

Highest at JPY 10,896 MM

OPERATING PROFIT(Q)

Highest at JPY 934 MM

PRE-TAX PROFIT(Q)

Highest at JPY 756 MM

-6What is not working for the Company

NET PROFIT(Q)

At JPY 160.86 MM has Fallen at -48.45%

INTEREST(Q)

Highest at JPY 9 MM

EPS(Q)

Lowest at JPY 2.76

Here's what is working for Punch Industry Co., Ltd.

Inventory Turnover Ratio

Highest at 6.94 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 10,896 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 934 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 756 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Lowest at -14.19 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -3.61% (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 Punch Industry Co., Ltd.

Interest

At JPY 9 MM has Grown at 28.57%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 160.86 MM has Fallen at -48.45%

over average net sales of the previous four periods of JPY 312.05 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 9 MM

in the last five periods and Increased by 28.57% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY 2.76

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)