Taiheiyo Kouhatsu Inc. (8835) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Denkyo Group Holdings Co. Ltd.

Naito & Co., Ltd.

Otake Corp.

Molitec Steel Co., Ltd.

Apple International Co., Ltd.

Mansei Corp.

Taiheiyo Kouhatsu Inc.

Nousouken Corp.

WATT MANN CO., LTD.

Nakayamafuku Co., Ltd.

Sanrin Co., Ltd.

Why is Taiheiyo Kouhatsu Inc. ?

Poor Management Efficiency with a low ROCE of 3.64%

The company has been able to generate a Return on Capital Employed (avg) of 3.64% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 4.45% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 3.62% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 4.45% of over the last 5 years

NET SALES(HY) At JPY 21,924 MM has Grown at 19.04%
PRE-TAX PROFIT(Q) Highest at JPY 213 MM
NET PROFIT(Q) Highest at JPY 148 MM

With ROCE of 3.08%, it has a very attractive valuation with a 0.63 Enterprise value to Capital Employed

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 13.01%, its profits have fallen by -40.1%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Taiheiyo Kouhatsu Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Taiheiyo Kouhatsu Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Taiheiyo Kouhatsu Inc.

12.89%

0.03

14.31%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.32%

EBIT Growth (5y)

4.45%

EBIT to Interest (avg)

3.20

Debt to EBITDA (avg)

6.75

Net Debt to Equity (avg)

0.78

Sales to Capital Employed (avg)

1.34

Tax Ratio

32.70%

Dividend Payout Ratio

79.42%

Pledged Shares

Institutional Holding

ROCE (avg)

3.64%

ROE (avg)

3.62%

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

0.34

EV to EBIT

20.41

EV to EBITDA

10.22

EV to Capital Employed

0.63

EV to Sales

0.42

PEG Ratio

Dividend Yield

ROCE (Latest)

3.08%

ROE (Latest)

2.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

5What is working for the Company

NET SALES(HY)

At JPY 21,924 MM has Grown at 19.04%

PRE-TAX PROFIT(Q)

Highest at JPY 213 MM

NET PROFIT(Q)

Highest at JPY 148 MM

EPS(Q)

Highest at JPY 19.15

-10What is not working for the Company

INTEREST(HY)

At JPY 189 MM has Grown at 13.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 458.7

RAW MATERIAL COST(Y)

Grown by 7.31% (YoY

CASH AND EQV(HY)

Lowest at JPY 11,642 MM

Here's what is working for Taiheiyo Kouhatsu Inc.

Net Sales

At JPY 21,924 MM has Grown at 19.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 213 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 148 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 19.15

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Here's what is not working for Taiheiyo Kouhatsu Inc.

Interest

At JPY 189 MM has Grown at 13.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 458.7

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Cash and Eqv

Lowest at JPY 11,642 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 7.31% (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