Rorze Corp. (6323) 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

Restar Corp.

Kyocera Corp.

Micronics Japan Co., Ltd.

Rorze Corp.

Ferrotec Holdings Corp.

Renesas Electronics Corp.

ROHM Co., Ltd.

Socionext, Inc.

Nikon Corp.

JSR Corp.

Sanken Electric Co., Ltd.

Why is Rorze Corp. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 33.54%

Healthy long term growth as Net Sales has grown by an annual rate of 27.38% and Operating profit at 32.83%
Company has very low debt and has enough cash to service the debt requirements

Flat results in Nov 25

INTEREST(HY) At JPY 83 MM has Grown at 29.69%
ROCE(HY) Lowest at 18.38%
RAW MATERIAL COST(Y) Grown by 5.43% (YoY)

With ROCE of 37.02%, it has a attractive valuation with a 3.01 Enterprise value to Capital Employed

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 62.37%, its profits have risen by 23.7%

Market Beating Performance

The stock has generated a return of 62.37% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 41.38%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rorze Corp. 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 Rorze Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rorze Corp.

62.37%

-0.10

66.43%

Japan Nikkei 225

41.38%

1.48

27.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.38%

EBIT Growth (5y)

32.83%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.80

Tax Ratio

32.51%

Dividend Payout Ratio

12.68%

Pledged Shares

Institutional Holding

ROCE (avg)

32.76%

ROE (avg)

25.94%

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

2.48

EV to EBIT

8.14

EV to EBITDA

7.17

EV to Capital Employed

3.01

EV to Sales

2.10

PEG Ratio

Dividend Yield

ROCE (Latest)

37.02%

ROE (Latest)

21.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

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

7What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -32.38 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.75 times

CASH AND EQV(HY)

Highest at JPY 126,367 MM

NET PROFIT(Q)

Highest at JPY 6,601.36 MM

EPS(Q)

Highest at JPY 37.97

-14What is not working for the Company

INTEREST(HY)

At JPY 83 MM has Grown at 29.69%

ROCE(HY)

Lowest at 18.38%

RAW MATERIAL COST(Y)

Grown by 5.43% (YoY

NET SALES(Q)

Lowest at JPY 28,881 MM

Here's what is working for Rorze Corp.

Debt-Equity Ratio

Lowest at -32.38 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.75 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Highest at JPY 6,601.36 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 37.97

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 126,367 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 1,561 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 Rorze Corp.

Interest

At JPY 83 MM has Grown at 29.69%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 28,881 MM has Fallen at -10.98%

over average net sales of the previous four periods of JPY 32,444.75 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 28,881 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Raw Material Cost

Grown by 5.43% (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