Tokyo Communications Group, Inc. () 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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Why is Tokyo Communications Group, Inc. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -161.80% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -161.80% of over the last 5 years

Flat results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 859.51
RAW MATERIAL COST(Y) Grown by 13.98% (YoY)
NET SALES(Q) Lowest at JPY 1,511.73 MM

With ROE of -31.46%, it has a risky valuation with a 5.81 Price to Book Value

Over the past year, while the stock has generated a return of -11.03%, its profits have fallen by -148.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.03% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokyo Communications Group, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Tokyo Communications Group, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokyo Communications Group, Inc.

-11.03%

-0.70

71.10%

Japan Nikkei 225

40.96%

1.44

28.42%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.85%

EBIT Growth (5y)

-161.80%

EBIT to Interest (avg)

0.06

Debt to EBITDA (avg)

3.64

Net Debt to Equity (avg)

1.62

Sales to Capital Employed (avg)

2.31

Tax Ratio

40.69%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.05%

ROE (avg)

14.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

5.81

EV to EBIT

-55.46

EV to EBITDA

14.62

EV to Capital Employed

2.84

EV to Sales

0.72

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.12%

ROE (Latest)

-31.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

15What is working for the Company

ROCE(HY)

Highest at 33.89%

NET PROFIT(Q)

At JPY 91.85 MM has Grown at 114.19%

-21What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 859.51

RAW MATERIAL COST(Y)

Grown by 13.98% (YoY

NET SALES(Q)

Lowest at JPY 1,511.73 MM

INTEREST(Q)

Highest at JPY 12.24 MM

OPERATING PROFIT(Q)

Lowest at JPY 105.22 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.96 %

PRE-TAX PROFIT(Q)

Lowest at JPY 28.14 MM

Here's what is working for Tokyo Communications Group, Inc.

Net Profit

At JPY 91.85 MM has Grown at 114.19%

over average net sales of the previous four periods of JPY 42.88 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Here's what is not working for Tokyo Communications Group, Inc.

Pre-Tax Profit

At JPY 28.14 MM has Fallen at -84.4%

over average net sales of the previous four periods of JPY 180.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 12.24 MM has Grown at 54.77%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 859.51

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 1,511.73 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 12.24 MM

in the last five periods and Increased by 54.77% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 105.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 6.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 28.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Raw Material Cost

Grown by 13.98% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales