TOKAI RIKA CO., LTD. (6995) 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

NSK Ltd.

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Toyoda Gosei Co., Ltd.

DENSO Corp.

TOKAI RIKA CO., LTD.

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NHK Spring Co., Ltd.

Stanley Electric Co., Ltd.

Koito Manufacturing Co., Ltd.

Why is TOKAI RIKA CO., LTD. ?

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 9.42% of over the last 5 years

Flat results in Dec 25

INTEREST(HY) At JPY 36 MM has Grown at 71.43%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.53 times

With ROE of 9.45%, it has a very attractive valuation with a 0.64 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 23.21%, its profits have fallen by -3.9%
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 23.21% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TOKAI RIKA CO., LTD. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is TOKAI RIKA CO., LTD. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

TOKAI RIKA CO., LTD.

23.21%

1.44

25.48%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.32%

EBIT Growth (5y)

9.42%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

1.88

Tax Ratio

26.07%

Dividend Payout Ratio

28.93%

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

9.29%

ROE (avg)

6.39%

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

0.64

EV to EBIT

3.18

EV to EBITDA

2.01

EV to Capital Employed

0.49

EV to Sales

0.18

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

15.53%

ROE (Latest)

9.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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 -2.09% (YoY

CASH AND EQV(HY)

Highest at JPY 223,037 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.98 times

NET SALES(Q)

Highest at JPY 164,872 MM

-9What is not working for the Company

INTEREST(HY)

At JPY 36 MM has Grown at 71.43%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.53 times

Here's what is working for TOKAI RIKA CO., LTD.

Net Sales

Highest at JPY 164,872 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 223,037 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 6.98 times

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 -2.09% (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

Depreciation

Highest at JPY 6,095 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 TOKAI RIKA CO., LTD.

Interest

At JPY 36 MM has Grown at 71.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 6.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio