Totetsu Kogyo Co., Ltd. (1835) 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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Totetsu Kogyo Co., Ltd.

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MIRAIT One Corp.

Hitachi Zosen Corp.

Why is Totetsu Kogyo Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 1.85% and Operating profit at 0.88% over the last 5 years

Flat results in Dec 25

INTEREST(Q) At JPY 6.74 MM has Grown at 161.06%
DEBT-EQUITY RATIO (HY) Highest at 0.04 %
DEBTORS TURNOVER RATIO(HY) Lowest at 1.65 times

With ROE of 9.77%, it has a very attractive valuation with a 1.08 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 70.88%, its profits have risen by 38.3% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 70.88% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Totetsu Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Totetsu Kogyo Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Totetsu Kogyo Co., Ltd.

70.88%

2.51

28.81%

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)

1.85%

EBIT Growth (5y)

0.88%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

1.29

Tax Ratio

29.65%

Dividend Payout Ratio

40.19%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

13.30%

ROE (avg)

8.21%

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

1.08

EV to EBIT

7.97

EV to EBITDA

6.76

EV to Capital Employed

1.09

EV to Sales

0.77

PEG Ratio

0.29

Dividend Yield

0.01%

ROCE (Latest)

13.63%

ROE (Latest)

9.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

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

4What is working for the Company

ROCE(HY)

Highest at 10.76%

RAW MATERIAL COST(Y)

Fallen by -10.56% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 14.94 %

-11What is not working for the Company

INTEREST(Q)

At JPY 6.74 MM has Grown at 161.06%

DEBT-EQUITY RATIO (HY)

Highest at 0.04 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.65 times

Here's what is working for Totetsu Kogyo Co., Ltd.

Operating Profit Margin

Highest at 14.94 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -10.56% (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 794.34 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 Totetsu Kogyo Co., Ltd.

Interest

At JPY 6.74 MM has Grown at 161.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 0.04 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 1.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio