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

Kyocera Corp.

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Rorze Corp.

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Ferrotec Holdings Corp.

Socionext, Inc.

Nikon Corp.

Sanken Electric Co., Ltd.

JSR Corp.

Why is Rorze Corp. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 32.76%

Healthy long term growth as Net Sales has grown by an annual rate of 21.53% and Operating profit at 27.47%
Company has very low debt and has enough cash to service the debt requirements

The company has declared Negative results for the last 4 consecutive quarters

ROCE(HY) Lowest at 15.35%
INTEREST COVERAGE RATIO(Q) Lowest at 18,871.43
INTEREST(Q) Highest at JPY 49 MM

With ROCE of 35.57%, it has a fair valuation with a 5.57 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 171.50%, its profits have fallen by -13.1%

Market Beating Performance

The stock has generated a return of 171.50% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 88.41%

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.

154.23%

1.04

66.48%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.53%

EBIT Growth (5y)

27.47%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.81

Tax Ratio

32.51%

Dividend Payout Ratio

15.55%

Pledged Shares

Institutional Holding

ROCE (avg)

32.76%

ROE (avg)

25.77%

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

4.09

EV to EBIT

15.65

EV to EBITDA

12.98

EV to Capital Employed

5.57

EV to Sales

3.62

PEG Ratio

Dividend Yield

ROCE (Latest)

35.57%

ROE (Latest)

16.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

8What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -38.81 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.67 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 186.25%

RAW MATERIAL COST(Y)

Fallen by -13.28% (YoY

CASH AND EQV(HY)

Highest at JPY 139,757 MM

NET PROFIT(Q)

Highest at JPY 6,695.11 MM

-16What is not working for the Company

ROCE(HY)

Lowest at 15.35%

INTEREST COVERAGE RATIO(Q)

Lowest at 18,871.43

INTEREST(Q)

Highest at JPY 49 MM

EPS(Q)

Lowest at JPY 9.13

Here's what is working for Rorze Corp.

Debt-Equity Ratio

Lowest at -38.81 % 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 1.67 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 6,695.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 139,757 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 186.25%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -13.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 1,625 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 49 MM has Grown at 22.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 18,871.43

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 49 MM

in the last five periods and Increased by 22.5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY 9.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)