Tanaka Co., Ltd. (7619) 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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Tanaka Co., Ltd.

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Otake Corp.

Taiheiyo Kouhatsu Inc.

Nousouken Corp.

Why is Tanaka Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 92.89

Poor long term growth as Operating profit has grown by an annual rate 5.47% of over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INVENTORY TURNOVER RATIO(HY) Lowest at 10.53 times
INTEREST(Q) Highest at JPY 10.95 MM

With ROE of 5.69%, it has a very attractive valuation with a 0.51 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 28.74%, its profits have risen by 8.7% ; the PEG ratio of the company is 1

Underperformed the market in the last 1 year

The stock has generated a return of 28.74% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%

Real-Time Research Report

Verdict Report

How much should you hold?

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

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tanaka Co., Ltd.

28.74%

0.38

20.23%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.14%

EBIT Growth (5y)

5.47%

EBIT to Interest (avg)

92.89

Debt to EBITDA (avg)

0.93

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

2.20

Tax Ratio

28.88%

Dividend Payout Ratio

27.54%

Pledged Shares

Institutional Holding

ROCE (avg)

8.06%

ROE (avg)

6.73%

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

0.51

EV to EBIT

6.88

EV to EBITDA

5.17

EV to Capital Employed

0.52

EV to Sales

0.19

PEG Ratio

1.03

Dividend Yield

ROCE (Latest)

7.58%

ROE (Latest)

5.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

RAW MATERIAL COST(Y)

Fallen by -4.81% (YoY

NET SALES(Q)

Highest at JPY 12,819.73 MM

OPERATING PROFIT(Q)

Highest at JPY 529.2 MM

PRE-TAX PROFIT(Q)

Highest at JPY 436.42 MM

-12What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.53 times

INTEREST(Q)

Highest at JPY 10.95 MM

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

Net Sales

Highest at JPY 12,819.73 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 529.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 436.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 436.42 MM has Grown at 65.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -4.81% (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 Tanaka Co., Ltd.

Interest

At JPY 10.95 MM has Grown at 32.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 10.95 MM

in the last five periods and Increased by 32.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 10.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio