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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Hibino Corp.

Tokai Electronics Co., Ltd.

Naigai Tec Corp.

No.1 Co., Ltd.

Musashi 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

With a fall in Net Sales of -8.48%, the company declared Very Negative results in Dec 25

DEBT-EQUITY RATIO (HY) Highest at 52.56 %
INVENTORY TURNOVER RATIO(HY) Lowest at 3.69 times
NET SALES(Q) Lowest at JPY 2,949.09 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 20.83%, its profits have fallen by -50.1%

Underperformed the market in the last 1 year

The stock has generated a return of 20.83% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

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.

20.83%

0.00

68.10%

Japan Nikkei 225

36.73%

1.30

28.24%

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)

1.30

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

1.33

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

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

3What is working for the Company

NET PROFIT(9M)

At JPY 4.34 MM has Grown at 125.88%

-29What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 52.56 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.69 times

NET SALES(Q)

Lowest at JPY 2,949.09 MM

INTEREST(Q)

Highest at JPY 29.63 MM

OPERATING PROFIT(Q)

Lowest at JPY -21.45 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.73 %

PRE-TAX PROFIT(Q)

Lowest at JPY -95.79 MM

NET PROFIT(Q)

Lowest at JPY -37.4 MM

EPS(Q)

Lowest at JPY -0.46

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

Pre-Tax Profit

At JPY -95.79 MM has Fallen at -433.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -37.4 MM has Fallen at -235.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 29.63 MM has Grown at 28.53%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 2,949.09 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 29.63 MM

in the last five periods and Increased by 28.53% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -21.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -0.73 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -95.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -37.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -0.46

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 52.56 %

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 3.69 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio