Recomm Co., Ltd. (3323) 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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Mitachi Co., Ltd.

Musashi Co., Ltd.

Hibino Corp.

Ascentech KK

Tokai Electronics Co., Ltd.

Recomm Co., Ltd.

Kyoei Sangyo Co., Ltd.

Why is Recomm Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.14%

The company has been able to generate a Return on Equity (avg) of 4.14% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 27.53% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.14% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 2 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at JPY -140.2 MM
PRE-TAX PROFIT(Q) At JPY 64.37 MM has Fallen at -70.02%
ROCE(HY) Lowest at 1.25%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.35% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Recomm Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Recomm Co., Ltd.

-12.35%

-0.27

69.17%

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)

8.82%

EBIT Growth (5y)

27.53%

EBIT to Interest (avg)

2.05

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

1.28

Tax Ratio

46.49%

Dividend Payout Ratio

41.12%

Pledged Shares

Institutional Holding

ROCE (avg)

3.57%

ROE (avg)

4.14%

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

1.41

EV to EBIT

30.12

EV to EBITDA

16.22

EV to Capital Employed

1.28

EV to Sales

0.79

PEG Ratio

0.41

Dividend Yield

ROCE (Latest)

4.26%

ROE (Latest)

4.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.75% (YoY

NET SALES(Q)

Highest at JPY 4,015.57 MM

-32What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY -140.2 MM

PRE-TAX PROFIT(Q)

At JPY 64.37 MM has Fallen at -70.02%

ROCE(HY)

Lowest at 1.25%

NET PROFIT(Q)

At JPY 60.03 MM has Fallen at -52.89%

DEBT-EQUITY RATIO (HY)

Highest at 73 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.67 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.42 times

INTEREST(Q)

Highest at JPY 40.62 MM

Here's what is working for Recomm Co., Ltd.

Net Sales

Highest at JPY 4,015.57 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 4,015.57 MM has Grown at 18.26%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -6.75% (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

Here's what is not working for Recomm Co., Ltd.

Pre-Tax Profit

At JPY 64.37 MM has Fallen at -70.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Cash Flow

Lowest at JPY -140.2 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

At JPY 40.62 MM has Grown at 37.09%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 60.03 MM has Fallen at -52.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 40.62 MM

in the last five periods and Increased by 37.09% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 73 %

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 3.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio