Toumei Co. Ltd. (4439) 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

KSK Co., Ltd.

Nippon Information Development Co., Ltd.

Toumei Co. Ltd.

Soliton Systems KK

TASUKI Corp.

SpiderPlus & Co.

Minkabu The Infonoid Inc.

DIGITAL HEARTS HOLDINGS Co., Ltd.

Pole To Win Holdings, Inc.

MedPeer, Inc.

System Information Co., Ltd.

Why is Toumei Co. Ltd. ?

Strong Long Term Fundamental Strength with a 38.28% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 48.84% signifying high profitability per unit of total capital (equity and debt)

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

DEBT-EQUITY RATIO (HY) Highest at -53.45 %
INVENTORY TURNOVER RATIO(HY) Lowest at 53.39 times
INTEREST(Q) Highest at JPY 5.03 MM

With ROE of 21.57%, it has a attractive valuation with a 2.09 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 -58.59%, its profits have risen by 2.7%

Below par performance in long term as well as near term

Along with generating -58.59% 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 hold?

Overall Portfolio exposure to Toumei Co. Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Toumei Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toumei Co. Ltd.

-58.11%

-0.54

65.43%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.00%

EBIT Growth (5y)

38.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

2.53

Tax Ratio

28.82%

Dividend Payout Ratio

11.68%

Pledged Shares

Institutional Holding

ROCE (avg)

58.24%

ROE (avg)

13.34%

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

2.09

EV to EBIT

4.96

EV to EBITDA

4.63

EV to Capital Employed

3.60

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

72.63%

ROE (Latest)

21.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 15,373.58 MM

NET SALES(Q)

At JPY 7,788.87 MM has Grown at 17.3%

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -53.45 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 53.39 times

INTEREST(Q)

Highest at JPY 5.03 MM

Here's what is working for Toumei Co. Ltd.

Net Sales

At JPY 7,788.87 MM has Grown at 17.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 15,373.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 73.04 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 Toumei Co. Ltd.

Interest

At JPY 5.03 MM has Grown at 13.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 5.03 MM

in the last five periods and Increased by 13.92% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -53.45 %

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

Inventory Turnover Ratio

Lowest at 53.39 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio