Topy Industries, Ltd. (7231) 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

Maruichi Steel Tube Ltd.

Nippon Thompson Co., Ltd.

Topy Industries, Ltd.

ALCONIX Corp.

Minebea Mitsumi, Inc.

Nachi-Fujikoshi Corp.

Oiles Corp.

Neturen Co., Ltd.

Ryobi Ltd.

Mitsubishi Materials Corp.

Nippon Denko Co., Ltd.

Why is Topy Industries, Ltd. ?

Poor Management Efficiency with a low ROCE of 2.50%

The company has been able to generate a Return on Capital Employed (avg) of 2.50% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 13.20% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.14% signifying low profitability per unit of shareholders funds

Flat results in Jun 25

INTEREST(HY) At JPY 369 MM has Grown at 9.82%
PRE-TAX PROFIT(Q) At JPY 1,619 MM has Fallen at -44.13%
NET PROFIT(Q) At JPY 946.62 MM has Fallen at -55.52%

With ROCE of 3.01%, it has a very attractive valuation with a 0.54 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 51.64%, its profits have fallen by -18%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Topy Industries, Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Topy Industries, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Topy Industries, Ltd.

51.64%

0.68

27.98%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.69%

EBIT Growth (5y)

13.20%

EBIT to Interest (avg)

3.98

Debt to EBITDA (avg)

3.93

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.55

Tax Ratio

27.54%

Dividend Payout Ratio

36.64%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

2.50%

ROE (avg)

4.14%

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

0.41

EV to EBIT

18.06

EV to EBITDA

5.43

EV to Capital Employed

0.54

EV to Sales

0.32

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

3.01%

ROE (Latest)

6.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 28.49 %

RAW MATERIAL COST(Y)

Fallen by -27.3% (YoY

NET PROFIT(9M)

Higher at JPY 8,305.29 MM

CASH AND EQV(HY)

Highest at JPY 53,673 MM

-8What is not working for the Company

INTEREST(HY)

At JPY 369 MM has Grown at 9.82%

PRE-TAX PROFIT(Q)

At JPY 1,619 MM has Fallen at -44.13%

NET PROFIT(Q)

At JPY 946.62 MM has Fallen at -55.52%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.44%

NET SALES(Q)

Lowest at JPY 71,213 MM

Here's what is working for Topy Industries, Ltd.

Debt-Equity Ratio

Lowest at 28.49 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 53,673 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -27.3% (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 Topy Industries, Ltd.

Pre-Tax Profit

At JPY 1,619 MM has Fallen at -44.13%

over average net sales of the previous four periods of JPY 2,898 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 946.62 MM has Fallen at -55.52%

over average net sales of the previous four periods of JPY 2,128.42 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 369 MM has Grown at 9.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 71,213 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 4.44%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio