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.

TADANO Ltd.

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Why is TADANO Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.73

ROCE(HY) Highest at 9.27%
INTEREST COVERAGE RATIO(Q) Highest at 1,246.4
NET SALES(Q) Highest at JPY 108,930 MM

With ROE of 10.37%, it has a very attractive valuation with a 0.83 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 36.83%, its profits have risen by 78.8% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

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.

36.83%

0.56

40.73%

Japan Nikkei 225

70.84%

2.78

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.93%

EBIT Growth (5y)

3.50%

EBIT to Interest (avg)

9.73

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.99

Tax Ratio

52.65%

Dividend Payout Ratio

30.39%

Pledged Shares

Institutional Holding

2.15%

ROCE (avg)

7.35%

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

0.83

EV to EBIT

12.45

EV to EBITDA

8.10

EV to Capital Employed

0.87

EV to Sales

0.66

PEG Ratio

0.10

Dividend Yield

0.08%

ROCE (Latest)

6.96%

ROE (Latest)

10.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

25What is working for the Company

ROCE(HY)

Highest at 9.27%

INTEREST COVERAGE RATIO(Q)

Highest at 1,246.4

NET SALES(Q)

Highest at JPY 108,930 MM

OPERATING PROFIT(Q)

Highest at JPY 10,046 MM

PRE-TAX PROFIT(Q)

At JPY 8,849 MM has Grown at 68.83%

NET PROFIT(Q)

Highest at JPY 8,908 MM

-12What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 31.17 %

RAW MATERIAL COST(Y)

Grown by 7.06% (YoY

INTEREST(Q)

Highest at JPY 806 MM

Here's what is working for TADANO Ltd.

Net Sales

At JPY 108,930 MM has Grown at 36.44%

over average net sales of the previous four periods of JPY 79,839.5 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Interest Coverage Ratio

Highest at 1,246.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At JPY 8,908 MM has Grown at 135.47%

over average net sales of the previous four periods of JPY 3,783.05 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 108,930 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 10,046 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

At JPY 8,849 MM has Grown at 68.83%

over average net sales of the previous four periods of JPY 5,241.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 8,908 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Here's what is not working for TADANO Ltd.

Debt-Equity Ratio

Highest at 31.17 % and Grown

In each half year 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

Interest

Highest at JPY 806 MM

in the last five periods and Increased by 6.05% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 7.06% (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