Tokyo Electron Ltd. (8035) 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

Hitachi Ltd.

Daifuku Co., Ltd.

DAIKIN INDUSTRIES Ltd.

Tokyo Electron Ltd.

FANUC Corp.

DISCO Corp.

TOSHIBA Corp.

YASKAWA Electric Corp.

SMC Corp. (Japan)

Toyota Industries Corp.

OMRON Corp.

Why is Tokyo Electron Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 27.25%

Healthy long term growth as Net Sales has grown by an annual rate of 16.62% and Operating profit at 24.06%
Company has very low debt and has enough cash to service the debt requirements

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at JPY 598,771 MM
CASH AND EQV(HY) Highest at JPY 873,717 MM
INVENTORY TURNOVER RATIO(HY) Highest at 1.75 times

With ROE of 29.35%, it has a very attractive valuation with a 5.94 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 79.83%, its profits have risen by 49.7% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0

Majority shareholders : Non Institution

Market Beating Performance

The stock has generated a return of 79.83% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 46.29%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokyo Electron 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 Tokyo Electron Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tokyo Electron Ltd.

79.83%

371.82

50.31%

Japan Nikkei 225

46.29%

1.67

27.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.62%

EBIT Growth (5y)

24.06%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

1.22

Tax Ratio

22.94%

Dividend Payout Ratio

50.07%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

49.48%

ROE (avg)

27.25%

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

5.94

EV to EBIT

15.08

EV to EBITDA

13.84

EV to Capital Employed

7.74

EV to Sales

4.32

PEG Ratio

0.41

Dividend Yield

0.00%

ROCE (Latest)

51.31%

ROE (Latest)

29.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 598,771 MM

CASH AND EQV(HY)

Highest at JPY 873,717 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.75 times

-6What is not working for the Company

NET SALES(Q)

At JPY 552,047 MM has Fallen at -11.3%

OPERATING PROFIT MARGIN(Q)

Lowest at 24.89 %

RAW MATERIAL COST(Y)

Grown by 10.53% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 137,383 MM

Here's what is working for Tokyo Electron Ltd.

Operating Cash Flow

Highest at JPY 598,771 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 873,717 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 21,244 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 Tokyo Electron Ltd.

Net Sales

At JPY 552,047 MM has Fallen at -11.3%

over average net sales of the previous four periods of JPY 622,402.5 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Operating Profit Margin

Lowest at 24.89 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at JPY 137,383 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Raw Material Cost

Grown by 10.53% (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

Non Operating Income

Highest at JPY 0.25 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income