RIVER ELETEC CORP. (6666) 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

Hokuriku Electric Industry Co., Ltd.

WILLTEC Co., Ltd.

EARTH INFINITY CO. LTD.

Kikusui Holdings Corp.

ASTI CORP.

Miraial Co., Ltd.

RIVER ELETEC CORP.

Okaya Electric Industries Co., Ltd.

nms Holdings Corp.

Ohizumi MFG Co., Ltd.

Tamagawa Holdings Co., Ltd.

Why is RIVER ELETEC CORP. ?

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt company with Weak Long Term Fundamental Strength

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at JPY 410.26 MM
PRE-TAX PROFIT(Q) At JPY -63.64 MM has Fallen at -320.14%
ROCE(HY) Lowest at -5.42%

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 11.05%, its profits have risen by 22.8%

Underperformed the market in the last 1 year

The stock has generated a return of 11.05% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is RIVER ELETEC CORP. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

RIVER ELETEC CORP.

21.45%

-0.06

65.00%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.93%

EBIT Growth (5y)

-267.63%

EBIT to Interest (avg)

10.63

Debt to EBITDA (avg)

1.85

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

0.65

Tax Ratio

31.19%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.29%

ROE (avg)

16.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.81

EV to EBIT

-73.06

EV to EBITDA

9.98

EV to Capital Employed

0.87

EV to Sales

0.97

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.19%

ROE (Latest)

-1.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

6What is working for the Company

NET SALES(HY)

At JPY 3,166.74 MM has Grown at 25.14%

NET PROFIT(HY)

Higher at JPY -83.18 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.34%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.47%

-33What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 410.26 MM

PRE-TAX PROFIT(Q)

At JPY -63.64 MM has Fallen at -320.14%

ROCE(HY)

Lowest at -5.42%

INTEREST COVERAGE RATIO(Q)

Lowest at 657.48

RAW MATERIAL COST(Y)

Grown by 24.46% (YoY

INTEREST(Q)

Highest at JPY 14.97 MM

NET PROFIT(Q)

Lowest at JPY -123.97 MM

EPS(Q)

Lowest at JPY -15.06

Here's what is working for RIVER ELETEC CORP.

Net Sales

At JPY 3,166.74 MM has Grown at 25.14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 2.34%

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 5.47%

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 RIVER ELETEC CORP.

Pre-Tax Profit

At JPY -63.64 MM has Fallen at -320.14%

over average net sales of the previous four periods of JPY -15.15 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -123.97 MM has Fallen at -523.83%

over average net sales of the previous four periods of JPY -19.87 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 410.26 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest Coverage Ratio

Lowest at 657.48

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 14.97 MM

in the last five periods and Increased by 6.13% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Lowest at JPY -123.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -15.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 24.46% (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