Takihyo Co., Ltd. (9982) 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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Toba, Inc.

Takihyo Co., Ltd.

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Yagi & Co., Ltd.

UEX, Ltd.

Ozu Corp.

Misumi Co., Ltd.

Why is Takihyo Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.76%

The company has been able to generate a Return on Capital Employed (avg) of 1.76% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -11.53

Poor long term growth as Net Sales has grown by an annual rate of 5.03% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -11.53
The company has been able to generate a Return on Equity (avg) of 2.23% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.03% over the last 5 years

Flat results in May 26

OPERATING CASH FLOW(Y) Lowest at JPY 1,762 MM
INTEREST(9M) At JPY 144 MM has Grown at 5.11%

With ROCE of 5.32%, it has a fair 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 36.91%, its profits have risen by 40.4% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Takihyo Co., Ltd. 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 Takihyo Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Takihyo Co., Ltd.

37.87%

3.86

28.97%

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)

5.03%

EBIT Growth (5y)

31.34%

EBIT to Interest (avg)

-5.56

Debt to EBITDA (avg)

3.45

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.58

Tax Ratio

17.61%

Dividend Payout Ratio

24.07%

Pledged Shares

Institutional Holding

ROCE (avg)

2.87%

ROE (avg)

2.23%

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

0.70

EV to EBIT

13.70

EV to EBITDA

11.85

EV to Capital Employed

0.73

EV to Sales

0.42

PEG Ratio

0.31

Dividend Yield

ROCE (Latest)

5.32%

ROE (Latest)

4.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

7What is working for the Company

ROCE(HY)

Highest at 5.18%

INVENTORY TURNOVER RATIO(HY)

Highest at 11.47 times

RAW MATERIAL COST(Y)

Fallen by -0.42% (YoY

CASH AND EQV(HY)

Highest at JPY 10,587 MM

DEBT-EQUITY RATIO (HY)

Lowest at 7.85 %

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 1,762 MM

INTEREST(9M)

At JPY 144 MM has Grown at 5.11%

Here's what is working for Takihyo Co., Ltd.

Inventory Turnover Ratio

Highest at 11.47 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at JPY 10,587 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 7.85 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.42% (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 Takihyo Co., Ltd.

Operating Cash Flow

Lowest at JPY 1,762 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

At JPY 144 MM has Grown at 5.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)