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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Miura Co., Ltd.

SCREEN Holdings Co. Ltd.

Ebara Corp.

AMADA Co., Ltd.

Daifuku Co., Ltd.

MISUMI Group, Inc.

HOSHIZAKI Corp.

THK CO., LTD.

Sumitomo Heavy Industries, Ltd.

IHI 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

INTEREST(HY) At JPY 1,583 MM has Grown at 93.28%
OPERATING CASH FLOW(Y) Lowest at JPY 30,200 MM
NET PROFIT(HY) At JPY 3,727 MM has Grown at -48.33%

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 18.92%, its profits have fallen by -33.7%
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 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?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

THK CO., LTD.

18.92%

488.76

33.81%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

0.78

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 404.3%

RAW MATERIAL COST(Y)

Fallen by -0.09% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.2%

DIVIDEND PER SHARE(HY)

Highest at JPY 4.2

-23What is not working for the Company

INTEREST(HY)

At JPY 1,583 MM has Grown at 93.28%

OPERATING CASH FLOW(Y)

Lowest at JPY 30,200 MM

NET PROFIT(HY)

At JPY 3,727 MM has Grown at -48.33%

ROCE(HY)

Lowest at 1.93%

CASH AND EQV(HY)

Lowest at JPY 197,756 MM

DEBT-EQUITY RATIO (HY)

Highest at 2 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.05%

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

Debtors Turnover Ratio

Highest at 4.2%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 4.2

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 404.3%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.09% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for THK CO., LTD.

Interest

At JPY 1,583 MM has Grown at 93.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 3,727 MM has Grown at -48.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 30,200 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Cash and Eqv

Lowest at JPY 197,756 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 2 %

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

Inventory Turnover Ratio

Lowest at 3.05%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio