Rhythm Co., Ltd. (7769) 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

Yamaichi Electronics Co., Ltd.

Takaoka Toko Co., Ltd.

Nippon Chemi-Con Corp.

Rhythm Co., Ltd.

Teikoku Tsushin Kogyo Co., Ltd.

I-PEX, Inc.

SMK Corp.

Kyoden Co., Ltd.

Ohara, Inc.

Imagica Group, Inc.

OXIDE Corp.

Why is Rhythm Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.66%

The company has been able to generate a Return on Equity (avg) of 2.66% signifying low profitability per unit of shareholders funds

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Dec 25

NET PROFIT(HY) At JPY 750.44 MM has Grown at 159.56%
ROCE(HY) Highest at 7.51%
RAW MATERIAL COST(Y) Fallen by -16.5% (YoY)

With ROE of 2.74%, it has a very attractive valuation with a 0.98 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 3.53%, its profits have fallen by -18%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 3.53% 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 hold?

Overall Portfolio exposure to Rhythm 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 Rhythm Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rhythm Co., Ltd.

3.53%

0.02

37.31%

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)

1.78%

EBIT Growth (5y)

40.61%

EBIT to Interest (avg)

16.78

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

0.85

Tax Ratio

37.74%

Dividend Payout Ratio

165.24%

Pledged Shares

Institutional Holding

ROCE (avg)

3.08%

ROE (avg)

2.66%

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

0.98

EV to EBIT

30.24

EV to EBITDA

11.47

EV to Capital Employed

0.97

EV to Sales

0.76

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

3.22%

ROE (Latest)

2.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

13What is working for the Company

NET PROFIT(HY)

At JPY 750.44 MM has Grown at 159.56%

ROCE(HY)

Highest at 7.51%

RAW MATERIAL COST(Y)

Fallen by -16.5% (YoY

CASH AND EQV(HY)

Highest at JPY 27,905 MM

DEBT-EQUITY RATIO (HY)

Lowest at -18.17 %

-8What is not working for the Company

INTEREST(HY)

At JPY 45 MM has Grown at 55.17%

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

Net Profit

At JPY 750.44 MM has Grown at 159.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 27,905 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -18.17 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -16.5% (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 Rhythm Co., Ltd.

Interest

At JPY 45 MM has Grown at 55.17%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)