ROHM Co., Ltd. (6963) 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

Kyocera Corp.

Ferrotec Holdings Corp.

Restar Corp.

Micronics Japan Co., Ltd.

ROHM Co., Ltd.

Rorze Corp.

Renesas Electronics Corp.

Sanken Electric Co., Ltd.

Nikon Corp.

Socionext, Inc.

JSR Corp.

Why is ROHM Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.50%

The company has been able to generate a Return on Equity (avg) of 5.50% signifying low profitability per unit of shareholders funds

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

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.50%

The company has declared Negative results for the last 10 consecutive quarters

NET PROFIT(HY) At JPY -14,849 MM has Grown at -213.24%
INTEREST(HY) At JPY 712 MM has Grown at 50.85%
ROCE(HY) Lowest at -5.4%

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 47.43%, its profits have fallen by -130.4%

Market Beating Performance

The stock has generated a return of 47.43% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ROHM Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

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

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

Is ROHM Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

ROHM Co., Ltd.

47.43%

0.11

43.16%

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)

4.33%

EBIT Growth (5y)

-206.32%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.87

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.38

Tax Ratio

11.79%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

7.98%

ROE (avg)

5.50%

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

0.74

EV to EBIT

-20.28

EV to EBITDA

18.74

EV to Capital Employed

0.78

EV to Sales

1.81

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.85%

ROE (Latest)

-1.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 68,655 MM

PRE-TAX PROFIT(Q)

At JPY 2,603 MM has Grown at 144.71%

NET PROFIT(Q)

At JPY 3,003 MM has Grown at 163.45%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.76%

-23What is not working for the Company

NET PROFIT(HY)

At JPY -14,849 MM has Grown at -213.24%

INTEREST(HY)

At JPY 712 MM has Grown at 50.85%

ROCE(HY)

Lowest at -5.4%

DEBT-EQUITY RATIO (HY)

Highest at 21.18 %

RAW MATERIAL COST(Y)

Grown by 11.86% (YoY

CASH AND EQV(HY)

Lowest at JPY 461,953 MM

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

Operating Cash Flow

Highest at JPY 68,655 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit

At JPY 2,603 MM has Grown at 144.71%

over average net sales of the previous four periods of JPY -5,821.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 3,003 MM has Grown at 163.45%

over average net sales of the previous four periods of JPY -4,732.62 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 1.76%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Debt-Equity Ratio

Highest at 21.18 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at JPY 365 MM

in the last five periods and Increased by 5.19% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 461,953 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 11.86% (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