Tachikawa Corp. (7989) 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

AGC, Inc. (Japan)

Nippon Sheet Glass Co., Ltd.

Cleanup Corp.

Tachikawa Corp.

Maruhachi Holdings Co., Ltd.

TOLI Corp.

BRUNO, Inc.

Toso Co. Ltd.

Paramount Bed Holdings Co., Ltd.

Janis Ltd.

Suminoe Textile Co. Ltd.

Why is Tachikawa Corp. ?

Poor Management Efficiency with a low ROE of 6.45%

The company has been able to generate a Return on Equity (avg) of 6.45% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 0.13% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.45% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.84% and Operating profit at 0.13% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 0.57 MM has Grown at 32.02%
DEBT-EQUITY RATIO (HY) Highest at 0 %

With ROE of 6.22%, it has a expensive 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 42.67%, its profits have risen by 10.9% ; the PEG ratio of the company is 1.4
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 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, High Return

Absolute

Risk Adjusted

Volatility

Tachikawa Corp.

42.67%

2.81

31.65%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.84%

EBIT Growth (5y)

0.13%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.81

Tax Ratio

33.45%

Dividend Payout Ratio

43.43%

Pledged Shares

Institutional Holding

ROCE (avg)

13.14%

ROE (avg)

6.45%

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

8.28

EV to EBITDA

6.60

EV to Capital Employed

0.96

EV to Sales

0.88

PEG Ratio

1.43

Dividend Yield

ROCE (Latest)

11.57%

ROE (Latest)

6.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at JPY 4,660.44 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 3.03

DIVIDEND PAYOUT RATIO(Y)

Highest at 141.36%

RAW MATERIAL COST(Y)

Fallen by 1.46% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.03 times

-9What is not working for the Company

INTEREST(HY)

At JPY 0.57 MM has Grown at 32.02%

DEBT-EQUITY RATIO (HY)

Highest at 0 %

Here's what is working for Tachikawa Corp.

Operating Cash Flow

Highest at JPY 4,660.44 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Dividend per share

Highest at JPY 3.03 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Debtors Turnover Ratio

Highest at 3.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 141.36%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.46% (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 Tachikawa Corp.

Interest

At JPY 0.57 MM has Grown at 32.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 0 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio