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

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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

Flat results in Oct 25

INVENTORY TURNOVER RATIO(HY) Lowest at 4.56 times
OPERATING PROFIT(Q) Lowest at JPY 646.25 MM
OPERATING PROFIT MARGIN(Q) Lowest at 4.99 %

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 34.15%, its profits have risen by 29.1% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

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.

34.15%

0.37

74.25%

Japan Nikkei 225

36.73%

1.30

28.24%

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)

1.37

Tax Ratio

24.65%

Dividend Payout Ratio

46.89%

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

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 3.34

DIVIDEND PAYOUT RATIO(Y)

Highest at 218.53%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.34 times

-9What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.56 times

OPERATING PROFIT(Q)

Lowest at JPY 646.25 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.99 %

PRE-TAX PROFIT(Q)

Lowest at JPY 562.98 MM

NET PROFIT(Q)

Lowest at JPY 493.13 MM

EPS(Q)

Lowest at JPY 16.47

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

Dividend per share

Highest at JPY 3.34 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Debtors Turnover Ratio

Highest at 3.34 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 218.53%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 100.31 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 Tomoe Engineering Co., Ltd.

Net Profit

At JPY 493.13 MM has Fallen at -50.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 646.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.99 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 562.98 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Fallen at -31.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 493.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 16.47

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 4.56 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio