Ray Corp. (4317) 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

CyberBuzz, Inc.

GMO AD Partners, Inc.

CL Holdings, Inc. (Japan)

Interspace Co., Ltd.

Ray Corp.

Orchestra Holdings, Inc.

HYOJITO Co., Ltd.

Trenders, Inc.

Inclusive, Inc.

Scigineer, Inc.

CDG Co., Ltd.

Why is Ray Corp. ?

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

Poor long term growth as Net Sales has grown by an annual rate of 11.52% over the last 5 years

Flat results in Feb 26

INTEREST(9M) At JPY 5.13 MM has Grown at 10.48%
INVENTORY TURNOVER RATIO(HY) Lowest at 12.2 times
CASH AND EQV(HY) Lowest at JPY 5,092.69 MM

With ROE of 18.02%, it has a very attractive valuation with a 1.27 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 -1.74%, its profits have risen by 112.4% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -1.74% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ray Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Ray Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ray Corp.

-100.0%

0.29

31.61%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.52%

EBIT Growth (5y)

41.01%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

1.55

Tax Ratio

28.98%

Dividend Payout Ratio

20.29%

Pledged Shares

Institutional Holding

ROCE (avg)

25.17%

ROE (avg)

10.21%

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

1.27

EV to EBIT

4.24

EV to EBITDA

3.17

EV to Capital Employed

1.34

EV to Sales

0.60

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

31.56%

ROE (Latest)

18.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

8What is working for the Company

NET SALES(HY)

At JPY 7,574.02 MM has Grown at 27.43%

ROCE(HY)

Highest at 17.9%

RAW MATERIAL COST(Y)

Fallen by -0.75% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 7.11

-8What is not working for the Company

INTEREST(9M)

At JPY 5.13 MM has Grown at 10.48%

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.2 times

CASH AND EQV(HY)

Lowest at JPY 5,092.69 MM

Here's what is working for Ray Corp.

Net Sales

At JPY 7,574.02 MM has Grown at 27.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 7.11

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -0.75% (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 199.05 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Ray Corp.

Interest

At JPY 5.13 MM has Grown at 10.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 12.2 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Cash and Eqv

Lowest at JPY 5,092.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents