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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mitachi Co., Ltd.

Daiichi Jitsugyo Co., Ltd.

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Ascentech KK

Naigai Tec Corp.

Hibino Corp.

Musashi Co., Ltd.

No.1 Co., Ltd.

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 27.37% 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

Healthy long term growth as Net Sales has grown by an annual rate of 5.06%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at JPY 73.25 MM
INTEREST(Q) At JPY 20.45 MM has Grown at 21.23%
CASH AND EQV(HY) Lowest at JPY 5,025.59 MM

With ROE of 4.23%, it has a very attractive valuation with a 1.33 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 19.40%, its profits have fallen by -50.1%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Recomm Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Recomm Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Recomm Co., Ltd.

17.65%

-0.13

60.66%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.06%

EBIT Growth (5y)

27.37%

EBIT to Interest (avg)

2.05

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

1.31

Tax Ratio

46.49%

Dividend Payout Ratio

154.81%

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

1.33

EV to EBIT

34.70

EV to EBITDA

19.55

EV to Capital Employed

1.23

EV to Sales

0.66

PEG Ratio

Dividend Yield

ROCE (Latest)

3.54%

ROE (Latest)

4.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

22What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 70.85 MM has Grown at 287.83%

NET PROFIT(Q)

At JPY 40.2 MM has Grown at 193.54%

RAW MATERIAL COST(Y)

Fallen by -2.16% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.2%

NET SALES(Q)

At JPY 3,289.31 MM has Grown at 21.42%

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 73.25 MM

INTEREST(Q)

At JPY 20.45 MM has Grown at 21.23%

CASH AND EQV(HY)

Lowest at JPY 5,025.59 MM

DEBT-EQUITY RATIO (HY)

Highest at 52.46 %

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

Pre-Tax Profit

At JPY 70.85 MM has Grown at 287.83%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 40.2 MM has Grown at 193.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 3,289.31 MM has Grown at 21.42%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 5.2%

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 -2.16% (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.

Interest

At JPY 20.45 MM has Grown at 21.23%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 73.25 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Cash and Eqv

Lowest at JPY 5,025.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 52.46 %

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