Tamron Co., Ltd. (7740) 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

Doshisha Co., Ltd.

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Tamron Co., Ltd.

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YA-MAN Ltd.

Panasonic Holdings Corp.

Why is Tamron Co., Ltd. ?

High Management Efficiency with a high ROE of 13.40%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Operating profit has grown by an annual rate 22.81%

Negative results in Dec 25

ROCE(HY) Lowest at 13.98%
INTEREST COVERAGE RATIO(Q) Lowest at 12,588.24
DEBT-EQUITY RATIO (HY) Highest at -39.96 %

With ROE of 18.68%, it has a very attractive valuation with a 2.07 Price to Book Value

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 11.91%, its profits have risen by 18.8%

Underperformed the market in the last 1 year

The stock has generated a return of 11.91% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tamron Co., Ltd.

-100.0%

-0.96

80.60%

Japan Nikkei 225

38.94%

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)

7.54%

EBIT Growth (5y)

22.81%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

1.03

Tax Ratio

24.35%

Dividend Payout Ratio

39.82%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

29.86%

ROE (avg)

13.40%

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

2.07

EV to EBIT

6.73

EV to EBITDA

5.76

EV to Capital Employed

2.73

EV to Sales

1.44

PEG Ratio

Dividend Yield

ROCE (Latest)

40.58%

ROE (Latest)

18.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 248.06%

RAW MATERIAL COST(Y)

Fallen by -0.72% (YoY

-16What is not working for the Company

ROCE(HY)

Lowest at 13.98%

INTEREST COVERAGE RATIO(Q)

Lowest at 12,588.24

DEBT-EQUITY RATIO (HY)

Highest at -39.96 %

INTEREST(Q)

Highest at JPY 34 MM

NET PROFIT(Q)

Lowest at JPY 1,702 MM

EPS(Q)

Lowest at JPY 10.58

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

Dividend Payout Ratio

Highest at 248.06%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.72% (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 1,028 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 Tamron Co., Ltd.

Interest

At JPY 34 MM has Grown at 161.54%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 12,588.24

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 1,702 MM has Fallen at -44.91%

over average net sales of the previous four periods of JPY 3,089.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 34 MM

in the last five periods and Increased by 161.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Lowest at JPY 1,702 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 10.58

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -39.96 %

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