THK CO., LTD. (6481) 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

Miura Co., Ltd.

Daifuku Co., Ltd.

Sumitomo Heavy Industries, Ltd.

Ebara Corp.

SCREEN Holdings Co. Ltd.

MISUMI Group, Inc.

THK CO., LTD.

AMADA Co., Ltd.

IHI Corp.

HOSHIZAKI Corp.

SUMCO Corp.

Why is THK CO., LTD. ?

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At JPY 4,936 MM has Grown at -31.72%
ROCE(HY) Lowest at 1.9%
RAW MATERIAL COST(Y) Grown by 7.77% (YoY)

With ROE of 2.84%, it has a very attractive valuation with a 1.63 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 23.81%, its profits have fallen by -33.7%
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 23.81% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 45.96%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to THK 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 THK CO., LTD. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

THK CO., LTD.

-100.0%

464.37

40.12%

Japan Nikkei 225

41.38%

1.66

27.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.53%

EBIT Growth (5y)

15.60%

EBIT to Interest (avg)

10.68

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.77

Tax Ratio

47.69%

Dividend Payout Ratio

172.02%

Pledged Shares

Institutional Holding

0.88%

ROCE (avg)

7.98%

ROE (avg)

4.29%

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

1.63

EV to EBIT

30.89

EV to EBITDA

12.85

EV to Capital Employed

1.60

EV to Sales

1.51

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

5.19%

ROE (Latest)

2.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

Mildly Bearish

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

2What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.4 times

NET SALES(Q)

Highest at JPY 91,981 MM

-10What is not working for the Company

NET PROFIT(HY)

At JPY 4,936 MM has Grown at -31.72%

ROCE(HY)

Lowest at 1.9%

RAW MATERIAL COST(Y)

Grown by 7.77% (YoY

CASH AND EQV(HY)

Lowest at JPY 209,183 MM

DEBT-EQUITY RATIO (HY)

Highest at 4.84 %

Here's what is working for THK CO., LTD.

Net Sales

Highest at JPY 91,981 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 4.4 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 THK CO., LTD.

Net Profit

At JPY 4,936 MM has Grown at -31.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 209,183 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 4.84 %

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 7.77% (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