Why is Tachikawa Corp. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 1.29% and Operating profit at -1.33% over the last 5 years
3
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at JPY 4,653.19 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 3.14 times
- OPERATING PROFIT(Q) Highest at JPY 1,838.89 MM
4
With ROE of 6.25%, it has a very attractive valuation with a 1.05 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 57.63%, its profits have risen by 15.1% ; the PEG ratio of the company is 1.1
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 57.63% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%
How much should you hold?
- Overall Portfolio exposure to Tachikawa Corp. should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tachikawa Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Tachikawa Corp.
-100.0%
2.51
32.52%
Japan Nikkei 225
88.41%
3.25
27.24%
Quality key factors
Factor
Value
Sales Growth (5y)
1.29%
EBIT Growth (5y)
-1.33%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.28
Sales to Capital Employed (avg)
0.81
Tax Ratio
30.22%
Dividend Payout Ratio
43.43%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
14.72%
ROE (avg)
6.45%
Valuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
1.05
EV to EBIT
9.73
EV to EBITDA
7.61
EV to Capital Employed
1.07
EV to Sales
0.97
PEG Ratio
1.11
Dividend Yield
NA
ROCE (Latest)
10.95%
ROE (Latest)
6.25%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 4,653.19 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 3.14 times
OPERATING PROFIT(Q)
Highest at JPY 1,838.89 MM
OPERATING PROFIT MARGIN(Q)
Highest at 16.2 %
PRE-TAX PROFIT(Q)
Highest at JPY 1,604.52 MM
NET PROFIT(Q)
Highest at JPY 1,064.06 MM
EPS(Q)
Highest at JPY 52.94
-8What is not working for the Company
INTEREST(HY)
At JPY 0.58 MM has Grown at 86.22%
Here's what is working for Tachikawa Corp.
Operating Cash Flow
Highest at JPY 4,653.19 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Operating Profit
Highest at JPY 1,838.89 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 16.2 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 1,604.52 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 1,064.06 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 52.94
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Highest at 3.14 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Tachikawa Corp.
Interest
At JPY 0.58 MM has Grown at 86.22%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






