Techno Ryowa Ltd. (1965) 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

ASAHI KOGYOSHA CO., LTD.

DAI-DAN Co., Ltd.

Kawada Technologies, Inc.

Techno Ryowa Ltd.

NIPPON RIETEC CO., LTD.

Tokyo Energy & Systems, Inc.

Tekken Corp.

Fudo Tetra Corp.

Daiichi Kensetsu Corp.

Meiko Construction Co., Ltd.

Fuji Furukawa Engineering & Construction Co. Ltd.

Why is Techno Ryowa Ltd. ?

Poor Management Efficiency with a low ROE of 7.29%

The company has been able to generate a Return on Equity (avg) of 7.29% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 44.72% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 7.29% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.56% and Operating profit at 44.72% over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 58,337.5
INTEREST(Q) Highest at JPY 8 MM

With ROE of 19.42%, it has a fair 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 44.19%, its profits have risen by 87.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Techno Ryowa Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Techno Ryowa Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Techno Ryowa Ltd.

25.56%

4.66

53.31%

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)

11.56%

EBIT Growth (5y)

44.72%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.56

Tax Ratio

28.99%

Dividend Payout Ratio

29.78%

Pledged Shares

Institutional Holding

ROCE (avg)

18.78%

ROE (avg)

7.29%

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

6.71

EV to EBITDA

6.49

EV to Capital Employed

2.50

EV to Sales

1.08

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

37.27%

ROE (Latest)

19.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

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 -10.53% (YoY

CASH AND EQV(HY)

Highest at JPY 46,857 MM

DEBT-EQUITY RATIO (HY)

Lowest at -38.74 %

INVENTORY TURNOVER RATIO(HY)

Highest at 188.16 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.03 times

-7What is not working for the Company

INTEREST(HY)

At JPY 12 MM has Grown at 33.33%

Here's what is working for Techno Ryowa Ltd.

Cash and Eqv

Highest at JPY 46,857 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -38.74 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 188.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -10.53% (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 Techno Ryowa Ltd.

Interest

At JPY 12 MM has Grown at 33.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Non Operating Income

Highest at JPY 0.08 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income