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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Advantest Corp.

Dexerials Corp.

Amano Corp.

Azbil Corp.

Yokogawa Electric Corp.

Anritsu Corp.

Riken Keiki Co., Ltd.

Glory Ltd.

ULVAC, Inc.

Toshiba Tec Corp.

Topcon Corp.

Why is Riken Keiki Co., Ltd. ?

Strong Long Term Fundamental Strength with a 11.42% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 21.37% signifying high profitability per unit of total capital (equity and debt)

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

ROCE(HY) Lowest at 10.35%
INTEREST COVERAGE RATIO(Q) Lowest at 19,303.12
RAW MATERIAL COST(Y) Grown by 10.5% (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 -19.61%, its profits have fallen by -3.2%

Below par performance in long term as well as near term

Along with generating -19.61% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Riken Keiki Co., Ltd.

-19.61%

-0.52

37.14%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

0.63

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

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

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

6What is working for the Company

CASH AND EQV(HY)

Highest at JPY 46,177.22 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.2%

NET SALES(Q)

Highest at JPY 13,554.84 MM

OPERATING PROFIT(Q)

Highest at JPY 3,518.77 MM

-16What is not working for the Company

ROCE(HY)

Lowest at 10.35%

INTEREST COVERAGE RATIO(Q)

Lowest at 19,303.12

RAW MATERIAL COST(Y)

Grown by 10.5% (YoY

INTEREST(Q)

Highest at JPY 18.23 MM

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

Net Sales

Highest at JPY 13,554.84 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 3,518.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Cash and Eqv

Highest at JPY 46,177.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.2%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 530.63 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

At JPY 18.23 MM has Grown at 15.72%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 19,303.12

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 18.23 MM

in the last five periods and Increased by 15.72% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 10.5% (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