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

Nansin Co., Ltd.

Seiko Corp. (6286)

NFK Holdings Co., Ltd.

Kyoritsu Air Tech, Inc.

SONOCOM Co., Ltd.

Puequ Co. Ltd.

Hoden Seimitsu Kako Kenkyusho Co., Ltd.

Taihei Machinery Works, Ltd.

Tokyo Automatic Machinery Works Ltd.

Meiji Machine Co., 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 3.16% over the last 5 years

With a fall in Net Sales of -10.34%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 2 consecutive quarters
NET PROFIT(9M) At JPY 449.63 MM has Grown at -42.08%
ROCE(HY) Lowest at 3.17%
NET SALES(Q) At JPY 1,559.78 MM has Fallen at -10.84%

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 36.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.59% returns

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.

-6.59%

0.10

44.97%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.16%

EBIT Growth (5y)

6.53%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

1.07

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

0.59

EV to EBIT

-0.20

EV to EBITDA

-0.18

EV to Capital Employed

-0.07

EV to Sales

-0.02

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

8.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

NET PROFIT(Q)

At JPY 118.67 MM has Grown at 237.95%

PRE-TAX PROFIT(Q)

At JPY 185.45 MM has Grown at 142.43%

RAW MATERIAL COST(Y)

Fallen by -33.59% (YoY

-27What is not working for the Company

NET PROFIT(9M)

At JPY 449.63 MM has Grown at -42.08%

ROCE(HY)

Lowest at 3.17%

NET SALES(Q)

At JPY 1,559.78 MM has Fallen at -10.84%

CASH AND EQV(HY)

Lowest at JPY 5,511.26 MM

DEBT-EQUITY RATIO (HY)

Highest at -23.08 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.3 times

INTEREST(Q)

Highest at JPY 2.13 MM

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

Net Profit

At JPY 118.67 MM has Grown at 237.95%

over average net sales of the previous four periods of JPY 35.12 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 185.45 MM has Grown at 142.43%

over average net sales of the previous four periods of JPY 76.49 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -33.59% (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 35.84 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 1,559.78 MM has Fallen at -10.84%

over average net sales of the previous four periods of JPY 1,749.49 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

Highest at JPY 2.13 MM

in the last five periods and Increased by 6.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 5,511.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -23.08 %

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

Inventory Turnover Ratio

Lowest at 6.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio