TOWA Hi SYSTEM Co., Ltd. () 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

H.U. Group Holdings, Inc.

BML, Inc.

TOWA Hi SYSTEM Co., Ltd.

DNA Chip Research, Inc.

Uchiyama Holdings Co., Ltd.

I'rom Group Co., Ltd.

PLATZ Co., Ltd.

Signpost Corp. (Tokyo)

Amvis Holdings, Inc.

Japan Tissue Engineering Co., Ltd.

CMIC Holdings Co., Ltd.

Why is TOWA Hi SYSTEM 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 -3.28% and Operating profit at -7.06% over the last 5 years

Flat results in Jun 25

NET SALES(Q) At JPY 518.05 MM has Fallen at -7.92%
OPERATING PROFIT(Q) Lowest at JPY 92.98 MM
OPERATING PROFIT MARGIN(Q) Lowest at 17.95 %

With ROE of 10.03%, it has a very attractive valuation with a 1.22 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 28.03%, its profits have risen by 78.6% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TOWA Hi SYSTEM Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is TOWA Hi SYSTEM Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

TOWA Hi SYSTEM Co., Ltd.

28.03%

1.17

26.15%

Japan Nikkei 225

27.57%

1.07

25.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.28%

EBIT Growth (5y)

-7.06%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.54

Tax Ratio

32.02%

Dividend Payout Ratio

48.79%

Pledged Shares

Institutional Holding

ROCE (avg)

19.67%

ROE (avg)

9.43%

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

1.22

EV to EBIT

6.35

EV to EBITDA

5.48

EV to Capital Employed

1.39

EV to Sales

1.43

PEG Ratio

0.15

Dividend Yield

ROCE (Latest)

21.80%

ROE (Latest)

10.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.29%

DEBTORS TURNOVER RATIO(HY)

Highest at 10.57%

-7What is not working for the Company

NET SALES(Q)

At JPY 518.05 MM has Fallen at -7.92%

OPERATING PROFIT(Q)

Lowest at JPY 92.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.95 %

PRE-TAX PROFIT(Q)

At JPY 99.99 MM has Fallen at -34.24%

NET PROFIT(Q)

Lowest at JPY 63.32 MM

EPS(Q)

Lowest at JPY 28.42

Here's what is working for TOWA Hi SYSTEM Co., Ltd.

Inventory Turnover Ratio

Highest at 3.29%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 10.57%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 21.62 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 TOWA Hi SYSTEM Co., Ltd.

Net Sales

At JPY 518.05 MM has Fallen at -7.92%

over average net sales of the previous four periods of JPY 562.63 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 92.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 17.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At JPY 99.99 MM has Fallen at -34.24%

over average net sales of the previous four periods of JPY 152.06 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 63.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 63.32 MM has Fallen at -38.75%

over average net sales of the previous four periods of JPY 103.37 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 28.42

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.29 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income