Ryobi Ltd. (5851) 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

Maruichi Steel Tube Ltd.

Nippon Thompson Co., Ltd.

Topy Industries, Ltd.

ALCONIX Corp.

Minebea Mitsumi, Inc.

Nachi-Fujikoshi Corp.

Oiles Corp.

Neturen Co., Ltd.

Ryobi Ltd.

Mitsubishi Materials Corp.

Nippon Denko Co., Ltd.

Why is Ryobi Ltd. ?

Poor Management Efficiency with a low ROCE of 2.94%

The company has been able to generate a Return on Capital Employed (avg) of 2.94% signifying low profitability per unit of total capital (equity and debt)

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

Poor long term growth as Net Sales has grown by an annual rate of 7.75% and Operating profit at 13.59% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 3.44% signifying low profitability per unit of shareholders funds

Negative results in Sep 24

RAW MATERIAL COST(Y) Grown by 24.12% (YoY)
OPERATING PROFIT(Q) Lowest at JPY 6,204 MM
OPERATING PROFIT MARGIN(Q) Lowest at 8.79 %

With ROCE of 4.67%, it has a very attractive valuation with a 0.55 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 25.73%, its profits have fallen by -35.3%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ryobi Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Ryobi Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Ryobi Ltd.

26.36%

441.40

34.66%

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)

7.75%

EBIT Growth (5y)

13.59%

EBIT to Interest (avg)

4.09

Debt to EBITDA (avg)

2.14

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.27

Tax Ratio

39.28%

Dividend Payout Ratio

39.67%

Pledged Shares

Institutional Holding

0.11%

ROCE (avg)

2.94%

ROE (avg)

3.44%

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

0.43

EV to EBIT

11.76

EV to EBITDA

3.88

EV to Capital Employed

0.55

EV to Sales

0.37

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

4.67%

ROE (Latest)

4.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

Not enough Data to analyse Financial Trend

Here's what is working for Ryobi Ltd.

Debtors Turnover Ratio

Highest at 5%

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 5,347 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 Ryobi Ltd.

Pre-Tax Profit

At JPY 812 MM has Fallen at -78.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 605.7 MM has Fallen at -78.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 6,204 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 812 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 605.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 22.83

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 24.12% (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