Rinnai Corp. (5947) 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

Bunka Shutter Co. Ltd.

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TAKARA STANDARD CO., LTD.

Rinnai Corp.

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Noda Corp.

TOTO Ltd.

LIXIL Corp.

Danto Holdings Corp.

Why is Rinnai Corp. ?

Weak Long Term Fundamental Strength with a 4.83% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 4.83% of over the last 5 years

Negative results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 10,393.85
INTEREST(Q) Highest at JPY 130 MM
OPERATING PROFIT MARGIN(Q) Lowest at 11.89 %

With ROE of 10.07%, it has a very attractive valuation with a 1.18 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 -5.79%, its profits have risen by 2.4% ; the PEG ratio of the company is 2.7
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -5.79% 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 Rinnai Corp. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Rinnai Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Rinnai Corp.

-5.79%

223.71

23.19%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.94%

EBIT Growth (5y)

4.83%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

1.13

Tax Ratio

27.20%

Dividend Payout Ratio

38.47%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

19.62%

ROE (avg)

9.05%

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

1.18

EV to EBIT

7.00

EV to EBITDA

5.32

EV to Capital Employed

1.28

EV to Sales

0.72

PEG Ratio

2.67

Dividend Yield

ROCE (Latest)

18.31%

ROE (Latest)

10.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

ROCE(HY)

Highest at 8.69%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.01 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.27 times

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 10,393.85

INTEREST(Q)

Highest at JPY 130 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.89 %

PRE-TAX PROFIT(Q)

Lowest at JPY 10,301 MM

Here's what is working for Rinnai Corp.

Inventory Turnover Ratio

Highest at 4.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.27 times

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 4,333 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 Rinnai Corp.

Interest

At JPY 130 MM has Grown at 85.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 10,393.85

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 130 MM

in the last five periods and Increased by 85.71% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 11.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 10,301 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 10,301 MM has Fallen at -29.9%

over average net sales of the previous four periods of JPY 14,695.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)