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.

Nippon Chemi-Con Corp.

CMK Corp.

Hagiwara Electric Holdings Co., Ltd.

Teikoku Tsushin Kogyo Co., Ltd.

I-PEX, Inc.

Kyoden Co., Ltd.

Imagica Group, Inc.

OXIDE Corp.

Ohara, Inc.

Why is Teikoku Tsushin Kogyo Co., Ltd. ?

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

Low Debt Company with Strong Long Term Fundamental Strength

Flat results in Mar 26

NET PROFIT(HY) At JPY 922.79 MM has Grown at -36.39%
INTEREST(Q) At JPY 2.77 MM has Grown at 157.67%
RAW MATERIAL COST(Y) Grown by 9.55% (YoY)

With ROE of 6.61%, it has a very attractive valuation with a 0.99 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 38.31%, its profits have fallen by -4.6%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 38.31% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.12%

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.

38.31%

1.68

33.09%

Japan Nikkei 225

88.41%

3.12

27.27%

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

10.97%

Dividend Payout Ratio

47.18%

Pledged Shares

Institutional Holding

ROCE (avg)

9.26%

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

0.99

EV to EBIT

11.88

EV to EBITDA

7.38

EV to Capital Employed

0.98

EV to Sales

0.89

PEG Ratio

Dividend Yield

ROCE (Latest)

8.24%

ROE (Latest)

6.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 149.96%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.56 times

PRE-TAX PROFIT(Q)

Highest at JPY 944.85 MM

-7What is not working for the Company

NET PROFIT(HY)

At JPY 922.79 MM has Grown at -36.39%

INTEREST(Q)

At JPY 2.77 MM has Grown at 157.67%

RAW MATERIAL COST(Y)

Grown by 9.55% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 305.25 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.23 %

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

Pre-Tax Profit

Highest at JPY 944.85 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 944.85 MM has Grown at 77.3%

over average net sales of the previous four periods of JPY 532.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Highest at 4.56 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 149.96%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 209.71 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

At JPY 2.77 MM has Grown at 157.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 922.79 MM has Grown at -36.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 305.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 9.55% (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