Tokuden Co., Ltd. (3437) 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

Nansin Co., Ltd.

Seiko Corp. (6286)

Sansei Co., Ltd.

Tokuden Co., Ltd.

SONOCOM Co., Ltd.

Tokyo Kikai Seisakusho, Ltd.

Kyoritsu Air Tech, Inc.

Hoden Seimitsu Kako Kenkyusho Co., Ltd.

Taihei Machinery Works, Ltd.

Tokyo Automatic Machinery Works Ltd.

Meiji Machine Co., Ltd.

Why is Tokuden Co., Ltd. ?

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

Poor long term growth as Net Sales has grown by an annual rate of 3.97% over the last 5 years

The company has declared Negative results for the last 13 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 7,780.27
INVENTORY TURNOVER RATIO(HY) Lowest at 5.78 times
INTEREST(Q) Highest at JPY 3.21 MM

With ROE of 5.35%, it has a very attractive valuation with a 0.61 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 9.87%, its profits have risen by 0.9% ; the PEG ratio of the company is 11.4

Underperformed the market in the last 1 year

The stock has generated a return of 9.87% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokuden 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 Tokuden Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokuden Co., Ltd.

11.67%

0.44

38.64%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.97%

EBIT Growth (5y)

1.23%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.18

Tax Ratio

23.88%

Dividend Payout Ratio

32.81%

Pledged Shares

Institutional Holding

ROCE (avg)

13.61%

ROE (avg)

7.04%

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

0.61

EV to EBIT

8.50

EV to EBITDA

4.81

EV to Capital Employed

0.59

EV to Sales

0.40

PEG Ratio

11.41

Dividend Yield

ROCE (Latest)

6.91%

ROE (Latest)

5.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.6% (YoY

NET SALES(Q)

Highest at JPY 2,915.29 MM

NET PROFIT(Q)

Highest at JPY 134.32 MM

EPS(Q)

Highest at JPY 84.9

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 7,780.27

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.78 times

INTEREST(Q)

Highest at JPY 3.21 MM

Here's what is working for Tokuden Co., Ltd.

Net Sales

Highest at JPY 2,915.29 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 134.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 84.9

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -4.6% (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 102.84 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 Tokuden Co., Ltd.

Interest

At JPY 3.21 MM has Grown at 43.45%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 7,780.27

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 3.21 MM

in the last five periods and Increased by 43.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 5.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio