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

Toumei Co. Ltd.

Soliton Systems KK

TASUKI Corp.

Nippon Information Development Co., Ltd.

KSK Co., Ltd.

SpiderPlus & Co.

DIGITAL HEARTS HOLDINGS Co., Ltd.

Pole To Win Holdings, Inc.

Minkabu The Infonoid Inc.

MedPeer, Inc.

System Information Co., Ltd.

Why is Toumei Co. Ltd. ?

Strong Long Term Fundamental Strength with a 30.43% 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)

Flat results in Feb 26

INVENTORY TURNOVER RATIO(HY) Lowest at 64.98 times
INTEREST(Q) Highest at JPY 4.42 MM

With ROE of 24.66%, it has a attractive valuation with a 3.08 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 -65.67%, its profits have risen by 23.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -65.67% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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.

-65.67%

-0.58

63.22%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.13%

EBIT Growth (5y)

30.43%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

2.54

Tax Ratio

25.36%

Dividend Payout Ratio

11.68%

Pledged Shares

Institutional Holding

ROCE (avg)

48.84%

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

3.08

EV to EBIT

7.31

EV to EBITDA

6.85

EV to Capital Employed

5.66

EV to Sales

0.81

PEG Ratio

Dividend Yield

ROCE (Latest)

77.41%

ROE (Latest)

24.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 27.8%

RAW MATERIAL COST(Y)

Fallen by -2.14% (YoY

CASH AND EQV(HY)

Highest at JPY 14,794.38 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 5.62

-12What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 64.98 times

INTEREST(Q)

Highest at JPY 4.42 MM

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

Cash and Eqv

Highest at JPY 14,794.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 5.62

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 27.8%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.14% (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 62.67 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 4.42 MM has Grown at 22.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 4.42 MM

in the last five periods and Increased by 22.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 64.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio