Renesas Electronics Corp. (6723) 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

Restar Corp.

Kyocera Corp.

Micronics Japan Co., Ltd.

Rorze Corp.

Ferrotec Holdings Corp.

Renesas Electronics Corp.

ROHM Co., Ltd.

Socionext, Inc.

Nikon Corp.

JSR Corp.

Sanken Electric Co., Ltd.

Why is Renesas Electronics Corp. ?

Healthy long term growth as Net Sales has grown by an annual rate of 11.82% and Operating profit at 31.39%

The company has declared Negative results for the last 5 consecutive quarters

NET PROFIT(9M) At JPY -58,529.12 MM has Grown at -139.93%
INTEREST(Q) At JPY 51,686 MM has Grown at 984.47%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.78 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 5.27%, its profits have fallen by -41.7%

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 5.27% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 41.38%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Renesas Electronics Corp. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

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

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

Is Renesas Electronics Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Renesas Electronics Corp.

5.27%

633.27

57.77%

Japan Nikkei 225

41.38%

1.48

27.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.82%

EBIT Growth (5y)

31.39%

EBIT to Interest (avg)

12.52

Debt to EBITDA (avg)

1.45

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

0.45

Tax Ratio

16.78%

Dividend Payout Ratio

22.85%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

12.31%

ROE (avg)

12.07%

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

1.51

EV to EBIT

25.61

EV to EBITDA

11.69

EV to Capital Employed

1.34

EV to Sales

3.58

PEG Ratio

Dividend Yield

ROCE (Latest)

5.22%

ROE (Latest)

8.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Bullish

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

14What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 23,910 MM has Grown at 928.61%

NET PROFIT(Q)

At JPY 21,766.65 MM has Grown at 545.66%

NET SALES(Q)

Highest at JPY 351,537 MM

OPERATING PROFIT(Q)

Highest at JPY 118,790 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 290.67%

RAW MATERIAL COST(Y)

Fallen by -25.64% (YoY

-15What is not working for the Company

NET PROFIT(9M)

At JPY -58,529.12 MM has Grown at -139.93%

INTEREST(Q)

At JPY 51,686 MM has Grown at 984.47%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.78 times

Here's what is working for Renesas Electronics Corp.

Pre-Tax Profit

At JPY 23,910 MM has Grown at 928.61%

over average net sales of the previous four periods of JPY 2,324.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 21,766.65 MM has Grown at 545.66%

over average net sales of the previous four periods of JPY -4,884.12 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 351,537 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 118,790 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (JPY MM)

Dividend Payout Ratio

Highest at 290.67%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -25.64% (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 Renesas Electronics Corp.

Interest

At JPY 51,686 MM has Grown at 984.47%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio