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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tomoe Engineering Co., Ltd.

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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 a growth in Net Profit of 26.71%, the company declared Very Positive results in Apr 26

DIVIDEND PAYOUT RATIO(Y) Highest at 62.87%
DIVIDEND PER SHARE(HY) Highest at JPY 3.02
RAW MATERIAL COST(Y) Fallen by -9.89% (YoY)

With ROE of 8.81%, it has a fair valuation with a 1.38 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 31.94%, its profits have fallen by -12%

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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tomoe Engineering Co., Ltd.

31.94%

1.02

26.21%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.14%

EBIT Growth (5y)

17.10%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.26

Sales to Capital Employed (avg)

1.38

Tax Ratio

24.65%

Dividend Payout Ratio

46.89%

Pledged Shares

Institutional Holding

ROCE (avg)

16.51%

ROE (avg)

8.01%

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

1.38

EV to EBIT

9.42

EV to EBITDA

8.80

EV to Capital Employed

1.48

EV to Sales

0.83

PEG Ratio

Dividend Yield

ROCE (Latest)

15.75%

ROE (Latest)

8.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

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

10What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 62.87%

DIVIDEND PER SHARE(HY)

Highest at JPY 3.02

RAW MATERIAL COST(Y)

Fallen by -9.89% (YoY

OPERATING PROFIT(Q)

Highest at JPY 2,110 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.6 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,162 MM

NET PROFIT(Q)

Highest at JPY 1,480.21 MM

EPS(Q)

Highest at JPY 57.26

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.53 times

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

Dividend per share

Highest at JPY 3.02 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 62.87% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Operating Profit

Highest at JPY 2,110 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,162 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,480.21 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 57.26

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -9.89% (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 Tomoe Engineering Co., Ltd.

Inventory Turnover Ratio

Lowest at 4.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.05 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income