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. ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -12.40% of over the last 5 years
The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -12.40% of over the last 5 years

Negative results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 705.35
PRE-TAX PROFIT(Q) At JPY 83.98 MM has Fallen at -50.57%
DEBTORS TURNOVER RATIO(HY) Lowest at 9.19 times

With ROE of 89.98%, it has a very attractive valuation with a 2.72 Price to Book Value

Over the past year, while the stock has generated a return of -57.52%, its profits have risen by 489.2% ; the PEG ratio of the company is 0

Below par performance in long term as well as near term

Along with generating -57.52% 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 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokyo Communications Group, Inc.

-58.43%

-1.24

43.55%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.98%

EBIT Growth (5y)

-12.40%

EBIT to Interest (avg)

0.80

Debt to EBITDA (avg)

3.09

Net Debt to Equity (avg)

1.62

Sales to Capital Employed (avg)

2.43

Tax Ratio

0.22%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.25%

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

Industry P/E

Price to Book Value

2.72

EV to EBIT

13.67

EV to EBITDA

4.82

EV to Capital Employed

2.06

EV to Sales

0.43

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

15.06%

ROE (Latest)

89.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

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

11What is working for the Company

NET PROFIT(HY)

At JPY 103.35 MM has Grown at 181.7%

ROCE(HY)

Highest at 32.04%

RAW MATERIAL COST(Y)

Fallen by 0.13% (YoY

-21What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 705.35

PRE-TAX PROFIT(Q)

At JPY 83.98 MM has Fallen at -50.57%

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.19 times

INTEREST(Q)

Highest at JPY 20.89 MM

NET PROFIT(Q)

Lowest at JPY 11.49 MM

EPS(Q)

Lowest at JPY 1.14

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

Raw Material Cost

Fallen by 0.13% (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 Tokyo Communications Group, Inc.

Net Profit

At JPY 11.49 MM has Fallen at -81.22%

over average net sales of the previous four periods of JPY 61.21 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 20.89 MM has Grown at 70.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 705.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 83.98 MM has Fallen at -50.57%

over average net sales of the previous four periods of JPY 169.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

Highest at JPY 20.89 MM

in the last five periods and Increased by 70.67% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Lowest at JPY 11.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 1.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 9.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio