Taihei Machinery Works, Ltd. (6342) 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

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Meiji Machine Co., Ltd.

Puequ Co. Ltd.

Taihei Machinery Works, Ltd.

Okano Valve Manufacturing Co., Ltd.

Why is Taihei Machinery Works, Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.23% over the last 5 years

With a fall in Net Sales of -29.23%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 6 consecutive quarters
PRE-TAX PROFIT(Q) At JPY -85.4 MM has Fallen at -175.44%
NET PROFIT(Q) At JPY -12.31 MM has Fallen at -121.17%
DEBT-EQUITY RATIO (HY) Highest at -29.36 %

Underperformed the market in the last 1 year

The stock has generated a return of 8.04% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Taihei Machinery Works, Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Taihei Machinery Works, Ltd.

-100.0%

-0.06

43.95%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.23%

EBIT Growth (5y)

43.10%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

1.05

Tax Ratio

39.75%

Dividend Payout Ratio

35.12%

Pledged Shares

Institutional Holding

ROCE (avg)

33.61%

ROE (avg)

7.98%

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

0.61

EV to EBIT

5.83

EV to EBITDA

4.51

EV to Capital Employed

0.49

EV to Sales

0.41

PEG Ratio

Dividend Yield

ROCE (Latest)

8.40%

ROE (Latest)

3.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Bearish

OBV

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

9What is working for the Company

NET PROFIT(HY)

At JPY 106.37 MM has Grown at 155.84%

RAW MATERIAL COST(Y)

Fallen by -28.26% (YoY

-33What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -85.4 MM has Fallen at -175.44%

NET PROFIT(Q)

At JPY -12.31 MM has Fallen at -121.17%

DEBT-EQUITY RATIO (HY)

Highest at -29.36 %

CASH AND EQV(HY)

Lowest at JPY 5,326.65 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.29 times

NET SALES(Q)

Lowest at JPY 1,103.91 MM

INTEREST(Q)

Highest at JPY 2.63 MM

Here's what is working for Taihei Machinery Works, Ltd.

Raw Material Cost

Fallen by -28.26% (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

Depreciation

Highest at JPY 36.95 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Taihei Machinery Works, Ltd.

Net Sales

At JPY 1,103.91 MM has Fallen at -33.76%

over average net sales of the previous four periods of JPY 1,666.56 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -85.4 MM has Fallen at -175.44%

over average net sales of the previous four periods of JPY 113.2 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -12.31 MM has Fallen at -121.17%

over average net sales of the previous four periods of JPY 58.13 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 2.63 MM has Grown at 23.23%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -29.36 % 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

Net Sales

Lowest at JPY 1,103.91 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 2.63 MM

in the last five periods and Increased by 23.23% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 5,326.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 6.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio