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.

Hitachi Zosen Corp.

Yokogawa Bridge Holdings Corp.

Okumura Corp.

Why is Totetsu Kogyo Co., Ltd. ?

Weak Long Term Fundamental Strength with a 4.81% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 4.17% and Operating profit at 4.81% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 62.32 MM has Grown at 132.71%
INTEREST COVERAGE RATIO(Q) Lowest at 12,126
PRE-TAX PROFIT(Q) Lowest at JPY 2,527.56 MM

Below par performance in long term as well as near term

Along with generating -9.49% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Totetsu Kogyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Totetsu Kogyo Co., Ltd.

-9.49%

0.90

30.90%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.17%

EBIT Growth (5y)

4.81%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

1.26

Tax Ratio

29.53%

Dividend Payout Ratio

40.22%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

11.61%

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

1.15

EV to EBIT

8.64

EV to EBITDA

7.64

EV to Capital Employed

1.15

EV to Sales

0.93

PEG Ratio

1.06

Dividend Yield

ROCE (Latest)

13.33%

ROE (Latest)

9.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.68% (YoY

-13What is not working for the Company

INTEREST(HY)

At JPY 62.32 MM has Grown at 132.71%

INTEREST COVERAGE RATIO(Q)

Lowest at 12,126

PRE-TAX PROFIT(Q)

Lowest at JPY 2,527.56 MM

NET PROFIT(Q)

Lowest at JPY 1,667.18 MM

EPS(Q)

Lowest at JPY 48.41

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

Raw Material Cost

Fallen by -5.68% (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 Totetsu Kogyo Co., Ltd.

Interest

At JPY 62.32 MM has Grown at 132.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 12,126

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at JPY 2,527.56 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 1,667.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 48.41

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.17 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income