TOKAI Corp. /9729/ (9729) 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

teno.Holdings Co., Ltd.

TOKAI Corp. /9729/

Silver Life Co., Ltd.

Tameny, Inc.

Why is TOKAI Corp. /9729/ ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 0.74% of over the last 5 years

Negative results in Jun 25

INTEREST(9M) At JPY 20 MM has Grown at 11.11%
ROCE(HY) Lowest at 5.15%
INTEREST COVERAGE RATIO(Q) Lowest at 44,571.43

With ROE of 6.89%, it has a very attractive valuation with a 0.93 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 8.64%, its profits have fallen by -0.6%

Underperformed the market in the last 1 year

The stock has generated a return of 8.64% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TOKAI Corp. /9729/ should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is TOKAI Corp. /9729/ for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TOKAI Corp. /9729/

8.64%

0.44

29.33%

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)

4.36%

EBIT Growth (5y)

0.74%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

1.63

Tax Ratio

34.91%

Dividend Payout Ratio

41.71%

Pledged Shares

Institutional Holding

ROCE (avg)

16.15%

ROE (avg)

7.33%

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

0.93

EV to EBIT

6.57

EV to EBITDA

4.06

EV to Capital Employed

0.90

EV to Sales

0.36

PEG Ratio

Dividend Yield

ROCE (Latest)

13.62%

ROE (Latest)

6.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.63% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 17.64%

DEBTORS TURNOVER RATIO(HY)

Highest at 7.19%

NET SALES(Q)

Highest at JPY 39,182 MM

-13What is not working for the Company

INTEREST(9M)

At JPY 20 MM has Grown at 11.11%

ROCE(HY)

Lowest at 5.15%

INTEREST COVERAGE RATIO(Q)

Lowest at 44,571.43

CASH AND EQV(HY)

Lowest at JPY 52,112 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.96 %

PRE-TAX PROFIT(Q)

Lowest at JPY 2,064 MM

Here's what is working for TOKAI Corp. /9729/

Net Sales

Highest at JPY 39,182 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 17.64%

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 7.19%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.63% (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 TOKAI Corp. /9729/

Interest

At JPY 14 MM has Grown at 16.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 44,571.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 7.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 2,064 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Cash and Eqv

Lowest at JPY 52,112 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents