T. RAD Co., Ltd. (7236) 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

T. RAD Co., Ltd.

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Akebono Brake Industry Co., Ltd.

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F-Tech, Inc.

Okada Aiyon Corp.

Sekisui Kasei Co., Ltd.

Why is T. RAD Co., Ltd. ?

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

With a growth in Net Profit of 41.8%, the company declared Outstanding results in Dec 25

NET PROFIT(HY) At JPY 4,732 MM has Grown at 470.91%
INTEREST COVERAGE RATIO(Q) Highest at 8,096.36
ROCE(HY) Highest at 21.32%

With ROCE of 13.43%, it has a very attractive valuation with a 0.64 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 117.44%, its profits have risen by 49.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 117.44% 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 buy?

Overall Portfolio exposure to T. RAD Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is T. RAD Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

T. RAD Co., Ltd.

117.44%

2.37

57.77%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.06%

EBIT Growth (5y)

19.15%

EBIT to Interest (avg)

10.79

Debt to EBITDA (avg)

0.43

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

2.38

Tax Ratio

35.25%

Dividend Payout Ratio

36.71%

Pledged Shares

Institutional Holding

ROCE (avg)

7.83%

ROE (avg)

4.93%

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

0.62

EV to EBIT

4.75

EV to EBITDA

2.60

EV to Capital Employed

0.64

EV to Sales

0.20

PEG Ratio

0.14

Dividend Yield

0.01%

ROCE (Latest)

13.43%

ROE (Latest)

9.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

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

18What is working for the Company

NET PROFIT(HY)

At JPY 4,732 MM has Grown at 470.91%

INTEREST COVERAGE RATIO(Q)

Highest at 8,096.36

ROCE(HY)

Highest at 21.32%

RAW MATERIAL COST(Y)

Fallen by -7.7% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 9.43 %

DEBTORS TURNOVER RATIO(HY)

Highest at 6 times

PRE-TAX PROFIT(Q)

Highest at JPY 3,962 MM

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 27,436 MM

Here's what is working for T. RAD Co., Ltd.

Net Profit

At JPY 4,732 MM has Grown at 470.91%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (JPY MM)

Interest Coverage Ratio

Highest at 8,096.36 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at JPY 3,962 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Lowest at 9.43 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 6 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.7% (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

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

Cash and Eqv

Lowest at JPY 27,436 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents