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
How much should you hold?
- Overall Portfolio exposure to Tomoegawa Corp. should be less than 10%
- 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.
20.26%
-0.36
42.59%
Japan Nikkei 225
59.79%
2.06
29.57%
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%
Valuation Key Factors 
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%
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
Technical Movement
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 periodsMOJO 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 periodsMOJO 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 periodsMOJO 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)






