Teikoku Tsushin Kogyo Co., Ltd. (6763) 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

Yamaichi Electronics Co., Ltd.

Takaoka Toko Co., Ltd.

CMK Corp.

Teikoku Tsushin Kogyo Co., Ltd.

Hagiwara Electric Holdings Co., Ltd.

I-PEX, Inc.

Kyoden Co., Ltd.

Nippon Chemi-Con Corp.

Imagica Group, Inc.

OXIDE Corp.

Ohara, Inc.

Why is Teikoku Tsushin Kogyo Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.03%

The company has been able to generate a Return on Equity (avg) of 6.03% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 6.03%

Poor long term growth as Net Sales has grown by an annual rate of 8.80% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 6.03% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.80% over the last 5 years

Negative results in Jun 26

ROCE(HY) Lowest at 4.98%
PRE-TAX PROFIT(Q) At JPY 380 MM has Fallen at -39.75%
RAW MATERIAL COST(Y) Grown by 11.5% (YoY)

With ROE of 6.61%, it has a very attractive valuation with a 1.02 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 10.20%, its profits have fallen by -4.6%
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 Teikoku Tsushin Kogyo 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 Teikoku Tsushin Kogyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Teikoku Tsushin Kogyo Co., Ltd.

10.2%

1.25

33.24%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.80%

EBIT Growth (5y)

32.91%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

0.60

Tax Ratio

37.89%

Dividend Payout Ratio

73.39%

Pledged Shares

Institutional Holding

ROCE (avg)

9.48%

ROE (avg)

6.03%

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

1.02

EV to EBIT

12.48

EV to EBITDA

7.75

EV to Capital Employed

1.03

EV to Sales

0.93

PEG Ratio

Dividend Yield

ROCE (Latest)

8.24%

ROE (Latest)

6.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.89 times

-9What is not working for the Company

ROCE(HY)

Lowest at 4.98%

PRE-TAX PROFIT(Q)

At JPY 380 MM has Fallen at -39.75%

RAW MATERIAL COST(Y)

Grown by 11.5% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -29.67 %

NET PROFIT(Q)

At JPY 247.47 MM has Fallen at -33.95%

Here's what is working for Teikoku Tsushin Kogyo Co., Ltd.

Debtors Turnover Ratio

Highest at 4.89 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Teikoku Tsushin Kogyo Co., Ltd.

Pre-Tax Profit

At JPY 380 MM has Fallen at -39.75%

over average net sales of the previous four periods of JPY 630.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 247.47 MM has Fallen at -33.95%

over average net sales of the previous four periods of JPY 374.67 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -29.67 %

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

Raw Material Cost

Grown by 11.5% (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