Terasaki Electric Co., Ltd. (6637) 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

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Why is Terasaki Electric Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.20%

The company has been able to generate a Return on Equity (avg) of 6.20% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 6.20%

The company has been able to generate a Return on Equity (avg) of 6.20% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 6.20%

Flat results in Mar 26

INTEREST(HY) At JPY 61.96 MM has Grown at 24.66%
NET PROFIT(HY) At JPY 2,066.56 MM has Grown at -30.32%
ROCE(HY) Lowest at 7.84%

With ROE of 8.54%, it has a fair valuation with a 0.86 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 -4.36%, its profits have risen by 18.6% ; the PEG ratio of the company is 0.5

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.36% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Terasaki Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Terasaki Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Terasaki Electric Co., Ltd.

-4.36%

1.66

52.66%

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)

11.36%

EBIT Growth (5y)

19.83%

EBIT to Interest (avg)

54.19

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

1.05

Tax Ratio

35.80%

Dividend Payout Ratio

16.21%

Pledged Shares

Institutional Holding

ROCE (avg)

11.29%

ROE (avg)

6.20%

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

0.86

EV to EBIT

5.82

EV to EBITDA

4.48

EV to Capital Employed

0.82

EV to Sales

0.58

PEG Ratio

0.54

Dividend Yield

ROCE (Latest)

14.13%

ROE (Latest)

8.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

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

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 4

DIVIDEND PAYOUT RATIO(Y)

Highest at 35.68%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.42 times

NET SALES(Q)

Highest at JPY 17,983.97 MM

OPERATING PROFIT(Q)

Highest at JPY 2,505.13 MM

-12What is not working for the Company

INTEREST(HY)

At JPY 61.96 MM has Grown at 24.66%

NET PROFIT(HY)

At JPY 2,066.56 MM has Grown at -30.32%

ROCE(HY)

Lowest at 7.84%

DEBT-EQUITY RATIO (HY)

Highest at -13.16 %

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

Dividend per share

Highest at JPY 4 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 17,983.97 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 17,983.97 MM has Grown at 19.46%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,505.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Inventory Turnover Ratio

Highest at 2.42 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 35.68%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 574.56 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 Terasaki Electric Co., Ltd.

Interest

At JPY 61.96 MM has Grown at 24.66%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 2,066.56 MM has Grown at -30.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -13.16 %

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