Suzuki Co., Ltd. (6785) 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

DMW Corp.

Meiji Electric Industries Co., Ltd.

Seibu Electric & Machinery Co., Ltd.

Suzuki Co., Ltd.

Techno Smart Corp.

Maezawa Industries, Inc.

Chugai Ro Co., Ltd.

JUKI Corp.

Futaba Corp.

Sanden Corp.

Takisawa Machine Tool Co., Ltd.

Why is Suzuki Co., Ltd. ?

High Management Efficiency with a high ROE of 10.69%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 78.52

Poor long term growth as Net Sales has grown by an annual rate of 2.88% over the last 5 years

Positive results in Jun 25

NET SALES(Q) Highest at JPY 8,787.04 MM
CASH AND EQV(HY) Highest at JPY 13,124.27 MM
DEBT-EQUITY RATIO (HY) Lowest at -16.17 %

With ROE of 12.73%, it has a very attractive valuation with a 0.97 Price to Book Value

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 28.82%, its profits have risen by 43.4% ; the PEG ratio of the company is 0.2

Consistent Returns over the last 3 years

Along with generating 28.82% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Suzuki Co., 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 Suzuki Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzuki Co., Ltd.

28.82%

2.02

29.74%

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)

2.88%

EBIT Growth (5y)

19.83%

EBIT to Interest (avg)

78.52

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.03

Tax Ratio

26.17%

Dividend Payout Ratio

44.19%

Pledged Shares

Institutional Holding

ROCE (avg)

15.68%

ROE (avg)

10.69%

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

0.97

EV to EBIT

5.14

EV to EBITDA

3.20

EV to Capital Employed

0.96

EV to Sales

0.68

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

18.76%

ROE (Latest)

12.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Bullish

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

8What is working for the Company

NET SALES(Q)

Highest at JPY 8,787.04 MM

CASH AND EQV(HY)

Highest at JPY 13,124.27 MM

DEBT-EQUITY RATIO (HY)

Lowest at -16.17 %

INVENTORY TURNOVER RATIO(HY)

Highest at 6.71%

OPERATING PROFIT(Q)

Highest at JPY 1,899.76 MM

-6What is not working for the Company

INTEREST(HY)

At JPY 28.84 MM has Grown at 17.44%

RAW MATERIAL COST(Y)

Grown by 5.47% (YoY

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

Net Sales

Highest at JPY 8,787.04 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,899.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Cash and Eqv

Highest at JPY 13,124.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -16.17 %

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 6.71%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 800.68 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 Suzuki Co., Ltd.

Interest

At JPY 28.84 MM has Grown at 17.44%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 5.47% (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