Toami Corp. (5973) 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

Pacific Metals Co., Ltd.

Canox Corp.

Seiwa Chuo Holdings Corp.

Toami Corp.

Tohoku Steel Co., Ltd.

Nichia Steel Works, Ltd.

Nippon Chutetsukan KK

Nippon Koshuha Steel Co., Ltd.

Kogi Corp.

Nippon Kinzoku Co., Ltd.

Hokuetsu Metal Co., Ltd.

Why is Toami Corp. ?

Poor Management Efficiency with a low ROCE of 1.49%

The company has been able to generate a Return on Capital Employed (avg) of 1.49% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.94 times

Poor long term growth as Operating profit has grown by an annual rate -28.13% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.94 times
The company has been able to generate a Return on Equity (avg) of 1.32% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -28.13% of over the last 5 years

Flat results in Mar 26

NET SALES(Q) Lowest at JPY 4,190.97 MM
INTEREST(Q) Highest at JPY 9.87 MM

Underperformed the market in the last 1 year

The stock has generated a return of 9.65% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Toami Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toami Corp.

-100.0%

0.18

23.39%

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)

8.73%

EBIT Growth (5y)

-28.13%

EBIT to Interest (avg)

6.53

Debt to EBITDA (avg)

7.28

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

1.15

Tax Ratio

31.48%

Dividend Payout Ratio

55.45%

Pledged Shares

Institutional Holding

ROCE (avg)

0.68%

ROE (avg)

1.32%

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

0.36

EV to EBIT

81.10

EV to EBITDA

12.42

EV to Capital Employed

0.50

EV to Sales

0.38

PEG Ratio

8.90

Dividend Yield

ROCE (Latest)

0.62%

ROE (Latest)

1.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

16What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 19.59 %

PRE-TAX PROFIT(Q)

At JPY 6.21 MM has Grown at 139.68%

RAW MATERIAL COST(Y)

Fallen by -26.58% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.25 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.34 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.34

NET PROFIT(Q)

At JPY -4.73 MM has Grown at 91.18%

-11What is not working for the Company

NET SALES(Q)

Lowest at JPY 4,190.97 MM

INTEREST(Q)

Highest at JPY 9.87 MM

Here's what is working for Toami Corp.

Pre-Tax Profit

At JPY 6.21 MM has Grown at 139.68%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Lowest at 19.59 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Profit

At JPY -4.73 MM has Grown at 91.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 5.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.34 times

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 4.34

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -26.58% (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 Toami Corp.

Interest

At JPY 9.87 MM has Grown at 25.74%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 4,190.97 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 9.87 MM

in the last five periods and Increased by 25.74% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Non Operating Income

Highest at JPY 2.84 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income