Riken Keiki Co., Ltd. (7734) 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

Advantest Corp.

Yokogawa Electric Corp.

Dexerials Corp.

Amano Corp.

Riken Keiki Co., Ltd.

Azbil Corp.

Anritsu Corp.

Glory Ltd.

ULVAC, Inc.

Toshiba Tec Corp.

Topcon Corp.

Why is Riken Keiki Co., Ltd. ?

High Management Efficiency with a high ROE of 11.25%

Company has very low debt and has enough cash to service the debt requirements

The company has declared Negative results for the last 6 consecutive quarters

INTEREST(HY) At JPY 35.97 MM has Grown at 41.26%
RAW MATERIAL COST(Y) Grown by 6.63% (YoY)

With ROE of 10.33%, it has a expensive valuation with a 1.79 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 15.41%, its profits have fallen by -3.2%

Underperformed the market in the last 1 year

The stock has generated a return of 15.41% 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 Riken Keiki 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 Riken Keiki Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Riken Keiki Co., Ltd.

15.41%

-0.50

36.20%

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)

8.78%

EBIT Growth (5y)

11.42%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.62

Tax Ratio

29.44%

Dividend Payout Ratio

26.15%

Pledged Shares

Institutional Holding

ROCE (avg)

21.37%

ROE (avg)

11.25%

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

1.79

EV to EBIT

11.10

EV to EBITDA

9.30

EV to Capital Employed

2.08

EV to Sales

2.41

PEG Ratio

Dividend Yield

ROCE (Latest)

18.77%

ROE (Latest)

10.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

4What is working for the Company

CASH AND EQV(HY)

Highest at JPY 51,183.13 MM

DEBT-EQUITY RATIO (HY)

Lowest at -28.99 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.24 times

NET SALES(Q)

Highest at JPY 13,904.46 MM

-9What is not working for the Company

INTEREST(HY)

At JPY 35.97 MM has Grown at 41.26%

RAW MATERIAL COST(Y)

Grown by 6.63% (YoY

Here's what is working for Riken Keiki Co., Ltd.

Net Sales

Highest at JPY 13,904.46 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 51,183.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -28.99 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest

At JPY 35.97 MM has Grown at 41.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 6.63% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales