Tomoegawa Corp.

  • Market Cap: Micro Cap
  • Industry: Paper, Forest & Jute Products
  • ISIN: JP3631000001
JPY
843.00
161 (23.61%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Nippon Kodoshi Corp.
Tomoegawa Corp.
Chuetsu Pulp & Paper Co., Ltd.
Rengo Co., Ltd.
Daio Paper Corp.
Tokushu Tokai Paper Co., Ltd.
Nippon Filcon Co., Ltd.
Nichiban Co., Ltd.
Mitsubishi Paper Mills Ltd.
Hokuetsu Corp.
Nippon Paper Industries Co., Ltd.

Why is Tomoegawa Corp. ?

1
Poor Management Efficiency with a low ROCE of 6.08%
  • The company has been able to generate a Return on Capital Employed (avg) of 6.08% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 3.21% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Capital Employed (avg) of 6.08% signifying low profitability per unit of total capital (equity and debt)
3
Poor long term growth as Net Sales has grown by an annual rate of 3.21% over the last 5 years
4
Flat results in Mar 26
  • INTEREST(Q) Highest at JPY 106 MM
5
With ROCE of 4.81%, it has a attractive valuation with a 0.69 Enterprise value to Capital Employed
  • 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 20.26%, its profits have fallen by -33.2%
  • At the current price, the company has a high dividend yield of 0
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Tomoegawa Corp. should be less than 10%
  2. Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Tomoegawa Corp. for you?

Medium Risk, Low Return

Absolute
Risk Adjusted
Volatility
Tomoegawa Corp.
-100.0%
-0.36
42.66%
Japan Nikkei 225
59.79%
2.03
29.50%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
3.21%
EBIT Growth (5y)
30.35%
EBIT to Interest (avg)
6.75
Debt to EBITDA (avg)
2.43
Net Debt to Equity (avg)
0.58
Sales to Capital Employed (avg)
1.19
Tax Ratio
19.69%
Dividend Payout Ratio
15.72%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.25%
ROE (avg)
9.00%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.51
EV to EBIT
14.40
EV to EBITDA
5.78
EV to Capital Employed
0.69
EV to Sales
0.52
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.81%
ROE (Latest)
6.42%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company
NET PROFIT(HY)

At JPY 481.44 MM has Grown at 422.68%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.51 times

NET SALES(Q)

Highest at JPY 9,356 MM

RAW MATERIAL COST(Y)

Fallen by 1.19% (YoY

-11What is not working for the Company
INTEREST(Q)

Highest at JPY 106 MM

Here's what is working for Tomoegawa Corp.

Net Profit
At JPY 481.44 MM has Grown at 422.68%
Year on Year (YoY)
MOJO Watch
Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales
Highest at JPY 9,356 MM and Grown
In each period in the last five periods
MOJO Watch
Near term sales trend is very positive

Net Sales (JPY MM)

Debtors Turnover Ratio
Highest at 5.51 times and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by 1.19% (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

Depreciation
Highest at JPY 540 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 Tomoegawa Corp.

Interest
At JPY 106 MM has Grown at 60.61%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest
Highest at JPY 106 MM
in the last five periods and Increased by 60.61% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)