TAKAMISAWA CYBERNETICS CO., LTD. (6424) 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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NAGOYA ELECTRIC WORKS CO., LTD.

Nireco Corp.

NF Holdings Corp.

Nadex Co., Ltd.

TAKAMISAWA CYBERNETICS CO., LTD.

IMV Corp.

Shikino High-Tech Co., Ltd.

Why is TAKAMISAWA CYBERNETICS CO., LTD. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -1.39% over the last 5 years
The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -1.39% over the last 5 years

Flat results in Mar 26

NET SALES(HY) At JPY 7,187.5 MM has Grown at -11.95%
ROCE(HY) Lowest at 7.85%
INTEREST(Q) At JPY 17.06 MM has Grown at 27.69%

With ROCE of 6.82%, it has a attractive valuation with a 0.73 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 -8.97%, its profits have fallen by -59.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.97% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TAKAMISAWA CYBERNETICS CO., LTD. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is TAKAMISAWA CYBERNETICS CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TAKAMISAWA CYBERNETICS CO., LTD.

-8.07%

-2.60

13.07%

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)

-1.39%

EBIT Growth (5y)

-4.12%

EBIT to Interest (avg)

14.76

Debt to EBITDA (avg)

1.61

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.45

Tax Ratio

29.41%

Dividend Payout Ratio

20.37%

Pledged Shares

Institutional Holding

ROCE (avg)

10.89%

ROE (avg)

12.19%

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

0.65

EV to EBIT

10.77

EV to EBITDA

6.66

EV to Capital Employed

0.73

EV to Sales

0.45

PEG Ratio

Dividend Yield

ROCE (Latest)

6.82%

ROE (Latest)

7.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

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

10What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 2.32

DIVIDEND PAYOUT RATIO(Y)

Highest at 19.09%

RAW MATERIAL COST(Y)

Fallen by -10.89% (YoY

OPERATING PROFIT(Q)

Highest at JPY 720 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.29 %

PRE-TAX PROFIT(Q)

Highest at JPY 805.8 MM

NET PROFIT(Q)

Highest at JPY 547.01 MM

EPS(Q)

Highest at JPY 120.45

-8What is not working for the Company

NET SALES(HY)

At JPY 7,187.5 MM has Grown at -11.95%

ROCE(HY)

Lowest at 7.85%

INTEREST(Q)

At JPY 17.06 MM has Grown at 27.69%

Here's what is working for TAKAMISAWA CYBERNETICS CO., LTD.

Dividend per share

Highest at JPY 2.32 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Operating Profit

Highest at JPY 720 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 16.29 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 805.8 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 547.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 120.45

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Dividend Payout Ratio

Highest at 19.09%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -10.89% (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 TAKAMISAWA CYBERNETICS CO., LTD.

Interest

At JPY 17.06 MM has Grown at 27.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 7,187.5 MM has Grown at -11.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)