Raito Kogyo Co., Ltd. (1926) 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

Kumagai Gumi Co., Ltd.

Raito Kogyo Co., Ltd.

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Okumura Corp.

Yokogawa Bridge Holdings Corp.

MIRAIT One Corp.

Hitachi Zosen Corp.

Why is Raito Kogyo Co., Ltd. ?

High Management Efficiency with a high ROE of 10.62%

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

Positive results in Dec 25

ROCE(HY) Highest at 14.08%
INTEREST COVERAGE RATIO(Q) Highest at 19,759.38
RAW MATERIAL COST(Y) Fallen by -11.56% (YoY)

With ROE of 11.23%, it has a very attractive valuation with a 1.56 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 56.42%, its profits have risen by 23.2% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 56.42% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Raito Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Raito Kogyo Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Raito Kogyo Co., Ltd.

56.42%

3.94

23.64%

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)

2.72%

EBIT Growth (5y)

5.35%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

1.37

Tax Ratio

29.21%

Dividend Payout Ratio

46.66%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

23.33%

ROE (avg)

10.62%

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

1.56

EV to EBIT

8.39

EV to EBITDA

6.76

EV to Capital Employed

1.84

EV to Sales

0.89

PEG Ratio

0.42

Dividend Yield

0.02%

ROCE (Latest)

21.96%

ROE (Latest)

11.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

No Trend

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

11What is working for the Company

ROCE(HY)

Highest at 14.08%

INTEREST COVERAGE RATIO(Q)

Highest at 19,759.38

RAW MATERIAL COST(Y)

Fallen by -11.56% (YoY

NET SALES(Q)

Highest at JPY 38,457 MM

OPERATING PROFIT(Q)

Highest at JPY 6,323 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.44 %

PRE-TAX PROFIT(Q)

Highest at JPY 5,670 MM

NET PROFIT(Q)

Highest at JPY 4,012.57 MM

EPS(Q)

Highest at JPY 93.36

-9What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 39,932 MM

DEBT-EQUITY RATIO (HY)

Highest at -18.3 %

INTEREST(Q)

Highest at JPY 32 MM

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

Interest Coverage Ratio

Highest at 19,759.38

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 38,457 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 6,323 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 16.44 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 5,670 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 4,012.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 93.36

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -11.56% (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 Raito Kogyo Co., Ltd.

Interest

At JPY 32 MM has Grown at 23.08%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 32 MM

in the last five periods and Increased by 23.08% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 39,932 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -18.3 %

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