Teikoku Electric Manufacturing Co., Ltd. (6333) 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

Tsugami Corp.

Tsukishima Holdings Co., Ltd.

Nomura Micro Science Co., Ltd.

Komori Corp.

Asahi Diamond Industrial Co., Ltd.

Teikoku Electric Manufacturing Co., Ltd.

Torishima Pump Mfg. Co., Ltd.

Sintokogio Ltd.

ANEST IWATA Corp.

Denyo Co., Ltd.

Sinko Industries Ltd.

Why is Teikoku Electric Manufacturing Co., Ltd. ?

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

Flat results in Dec 25

RAW MATERIAL COST(Y) Grown by 11% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 2.09 times
OPERATING PROFIT MARGIN(Q) Lowest at 19.52 %

With ROE of 12.47%, it has a very attractive valuation with a 1.82 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 -2.35%, its profits have risen by 24.6% ; the PEG ratio of the company is 0.6

Below par performance in long term as well as near term

Along with generating -2.35% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Teikoku Electric Manufacturing Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Teikoku Electric Manufacturing Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Teikoku Electric Manufacturing Co., Ltd.

-2.35%

0.71

30.28%

Japan Nikkei 225

36.73%

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)

5.32%

EBIT Growth (5y)

9.41%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.91

Tax Ratio

31.00%

Dividend Payout Ratio

50.17%

Pledged Shares

Institutional Holding

ROCE (avg)

24.09%

ROE (avg)

10.16%

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

1.82

EV to EBIT

7.79

EV to EBITDA

6.70

EV to Capital Employed

2.40

EV to Sales

1.50

PEG Ratio

0.59

Dividend Yield

ROCE (Latest)

30.84%

ROE (Latest)

12.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

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

4What is working for the Company

ROCE(HY)

Highest at 13.86%

INTEREST COVERAGE RATIO(Q)

Highest at 123,714.58

-4What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 11% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.09 times

OPERATING PROFIT MARGIN(Q)

Lowest at 19.52 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,415.22 MM

Here's what is working for Teikoku Electric Manufacturing Co., Ltd.

Interest Coverage Ratio

Highest at 123,714.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Here's what is not working for Teikoku Electric Manufacturing Co., Ltd.

Operating Profit Margin

Lowest at 19.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 1,415.22 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 2.09 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 11% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales