Tomoe Engineering Co., Ltd. (6309) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Riken Technos Corp.

Tomoe Engineering Co., Ltd.

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Dainichiseika Color & Chemicals Mfg. Co., Ltd.

Toyo Gosei Co., Ltd.

Tayca Corp.

Tanaka Chemical Corp.

Kanto Denka Kogyo Co., Ltd.

Why is Tomoe Engineering Co., Ltd. ?

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

Low Debt Company with Strong Long Term Fundamental Strength

With ROE of 10.56%, it has a very attractive valuation with a 1.18 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 32.79%, its profits have risen by 29.1% ; the PEG ratio of the company is 0.4

Consistent Returns over the last 3 years

Along with generating 32.79% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Tomoe Engineering Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Tomoe Engineering Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tomoe Engineering Co., Ltd.

-100.0%

0.29

73.32%

Japan Nikkei 225

27.37%

1.06

25.71%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.22%

EBIT Growth (5y)

18.27%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

1.36

Tax Ratio

24.65%

Dividend Payout Ratio

40.01%

Pledged Shares

Institutional Holding

ROCE (avg)

16.51%

ROE (avg)

7.81%

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

1.18

EV to EBIT

6.75

EV to EBITDA

6.32

EV to Capital Employed

1.25

EV to Sales

0.66

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

18.56%

ROE (Latest)

10.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly 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

12What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 54.84%

ROCE(HY)

Highest at 10.16%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.79%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.04%

DIVIDEND PER SHARE(HY)

Highest at JPY 3.04

NET SALES(Q)

Highest at JPY 16,229.32 MM

OPERATING PROFIT(Q)

Highest at JPY 2,009.92 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,983.04 MM

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.68% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -26.15 %

Here's what is working for Tomoe Engineering Co., Ltd.

Dividend Payout Ratio

Highest at 54.84% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at JPY 16,229.32 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,009.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 1,983.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Highest at 4.79%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.04%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 3.04

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for Tomoe Engineering Co., Ltd.

Debt-Equity Ratio

Highest at -26.15 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 5.68% (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