TADANO Ltd. (6395) 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

MODEC, Inc.

Hitachi Construction Machinery Co., Ltd.

Takeuchi Mfg. Co., Ltd.

TADANO Ltd.

Aichi Corp.

Komatsu Ltd.

MITSUI E&S Co., Ltd.

Yamabiko Corp.

Kubota Corp.

Kyokuto Kaihatsu Kogyo Co., Ltd.

Nisshinbo Holdings, Inc.

Why is TADANO Ltd. ?

Poor Management Efficiency with a low ROE of 3.66%

The company has been able to generate a Return on Equity (avg) of 3.66% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 4.76% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 3.66% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 4.76% of over the last 5 years

Flat results in Jun 26

ROCE(HY) Lowest at 0%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
INVENTORY TURNOVER RATIO(HY) Lowest at 0 times

With ROE of 9.12%, it has a very attractive valuation with a 0.84 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 25.46%, its profits have risen by 48.6% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TADANO Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is TADANO Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

TADANO Ltd.

25.82%

0.68

41.37%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.99%

EBIT Growth (5y)

4.76%

EBIT to Interest (avg)

7.03

Debt to EBITDA (avg)

0.79

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.99

Tax Ratio

17.44%

Dividend Payout Ratio

30.39%

Pledged Shares

Institutional Holding

2.15%

ROCE (avg)

6.82%

ROE (avg)

3.66%

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

0.84

EV to EBIT

13.99

EV to EBITDA

8.78

EV to Capital Employed

0.88

EV to Sales

0.68

PEG Ratio

0.19

Dividend Yield

0.08%

ROCE (Latest)

6.27%

ROE (Latest)

9.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

18What is working for the Company

NET SALES(9M)

At JPY 291,511 MM has Grown at 19.67%

RAW MATERIAL COST(Y)

Fallen by -40.87% (YoY

NET PROFIT(Q)

Highest at JPY inf MM

-11What is not working for the Company

ROCE(HY)

Lowest at 0%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

OPERATING PROFIT(Q)

Lowest at JPY 0 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0 %

PRE-TAX PROFIT(Q)

Lowest at JPY -1,710 MM

Here's what is working for TADANO Ltd.

Net Profit

At JPY inf MM has Grown at inf%

over average net sales of the previous four periods of JPY 4,692.82 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 291,511 MM has Grown at 19.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY inf MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -40.87% (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 TADANO Ltd.

Pre-Tax Profit

At JPY -1,710 MM has Fallen at -130.49%

over average net sales of the previous four periods of JPY 5,609 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Profit

Lowest at JPY 0 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 0 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -1,710 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)