Toei Animation Co., Ltd. (4816) 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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Toei Animation Co., Ltd.

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Why is Toei Animation Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.93%

Healthy long term growth as Net Sales has grown by an annual rate of 13.29% and Operating profit at 15.48%
Company has very low debt and has enough cash to service the debt requirements

Flat results in Mar 26

INVENTORY TURNOVER RATIO(HY) Lowest at 3.79 times
DEBTORS TURNOVER RATIO(HY) Lowest at 3.16 times
OPERATING PROFIT MARGIN(Q) Lowest at 29.82 %

With ROE of 15.15%, it has a attractive valuation with a 3.29 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 -28.07%, its profits have risen by 16.2% ; the PEG ratio of the company is 1.3

Below par performance in long term as well as near term

Along with generating -28.07% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Toei Animation Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Toei Animation Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toei Animation Co., Ltd.

-28.07%

-0.07

34.25%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.29%

EBIT Growth (5y)

15.48%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

0.66

Tax Ratio

28.00%

Dividend Payout Ratio

35.49%

Pledged Shares

Institutional Holding

0.96%

ROCE (avg)

47.47%

ROE (avg)

14.93%

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

3.29

EV to EBIT

13.85

EV to EBITDA

13.53

EV to Capital Employed

6.01

EV to Sales

4.70

PEG Ratio

1.34

Dividend Yield

ROCE (Latest)

43.41%

ROE (Latest)

15.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.01% (YoY

CASH AND EQV(HY)

Highest at JPY 181,655 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 3.16

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.79 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.16 times

OPERATING PROFIT MARGIN(Q)

Lowest at 29.82 %

Here's what is working for Toei Animation Co., Ltd.

Cash and Eqv

Highest at JPY 181,655 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 3.16

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -3.01% (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

Depreciation

Highest at JPY 209 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 Toei Animation Co., Ltd.

Operating Profit Margin

Lowest at 29.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.79 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio