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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DAI-DAN Co., Ltd.

Techno Ryowa Ltd.

ASAHI KOGYOSHA CO., LTD.

Fuji Furukawa Engineering & Construction Co. Ltd.

Tokyo Energy & Systems, Inc.

Fudo Tetra Corp.

Daiichi Kensetsu Corp.

NIPPON RIETEC CO., LTD.

Meiko Construction Co., Ltd.

Kawada Technologies, Inc.

Tekken Corp.

Why is Techno Ryowa Ltd. ?

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

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Jun 25

NET SALES(HY) At JPY 47,599 MM has Grown at 22.04%
NET PROFIT(HY) At JPY 5,028.06 MM has Grown at 77.68%
ROCE(HY) Highest at 16.25%

With ROE of 13.65%, it has a very attractive valuation with a 1.33 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 166.86%, its profits have risen by 64% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 166.86% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

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.

166.86%

4.90

51.61%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.68%

EBIT Growth (5y)

17.70%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.51

Tax Ratio

28.28%

Dividend Payout Ratio

29.00%

Pledged Shares

Institutional Holding

ROCE (avg)

13.30%

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

1.33

EV to EBIT

5.99

EV to EBITDA

5.74

EV to Capital Employed

1.43

EV to Sales

0.69

PEG Ratio

0.13

Dividend Yield

0.02%

ROCE (Latest)

23.93%

ROE (Latest)

13.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

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

19What is working for the Company

NET SALES(HY)

At JPY 47,599 MM has Grown at 22.04%

NET PROFIT(HY)

At JPY 5,028.06 MM has Grown at 77.68%

ROCE(HY)

Highest at 16.25%

PRE-TAX PROFIT(Q)

At JPY 2,499 MM has Grown at 172.52%

RAW MATERIAL COST(Y)

Fallen by -44.54% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -32.13 %

INVENTORY TURNOVER RATIO(HY)

Highest at 173.13%

-8What is not working for the Company

INTEREST(HY)

At JPY 9 MM has Grown at 50%

Here's what is working for Techno Ryowa Ltd.

Pre-Tax Profit

At JPY 2,499 MM has Grown at 172.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,695 MM has Grown at 177.41%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 20,479 MM has Grown at 26.54%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debt-Equity Ratio

Lowest at -32.13 %

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 173.13%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -44.54% (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 9 MM has Grown at 50%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)