Toyo Denki Seizo KK (6505) 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

Ahresty Corp.

Naikai Zosen Corp.

KATO WORKS CO., LTD.

The Kinki Sharyo Co., Ltd.

Maruyama Mfg Co., Inc.

Terasaki Electric Co., Ltd.

Japan Engine Corp.

Nikko Co., Ltd. (6306)

Toyo Denki Seizo KK

Alinco, Inc.

Sakai Heavy Industries, Ltd.

Why is Toyo Denki Seizo KK ?

Poor Management Efficiency with a low ROCE of 2.83%

The company has been able to generate a Return on Capital Employed (avg) of 2.83% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 1.75% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 2.83% signifying low profitability per unit of total capital (equity and debt)

Flat results in Feb 26

DEBTORS TURNOVER RATIO(HY) Lowest at 2.13 times
INTEREST(Q) Highest at JPY 34 MM

With ROCE of 6.32%, it has a very attractive valuation with a 0.87 Enterprise value to Capital Employed

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 39.99%, its profits have risen by 48.5% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Toyo Denki Seizo KK should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Toyo Denki Seizo KK for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Toyo Denki Seizo KK

39.36%

1.98

42.08%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.75%

EBIT Growth (5y)

19.46%

EBIT to Interest (avg)

14.08

Debt to EBITDA (avg)

3.70

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

0.96

Tax Ratio

21.38%

Dividend Payout Ratio

30.28%

Pledged Shares

Institutional Holding

ROCE (avg)

2.83%

ROE (avg)

5.75%

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

0.83

EV to EBIT

13.71

EV to EBITDA

10.46

EV to Capital Employed

0.87

EV to Sales

0.79

PEG Ratio

0.21

Dividend Yield

0.04%

ROCE (Latest)

6.32%

ROE (Latest)

8.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

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

10What is working for the Company

ROCE(HY)

Highest at 9.5%

RAW MATERIAL COST(Y)

Fallen by -20.6% (YoY

CASH AND EQV(HY)

Highest at JPY 8,552 MM

OPERATING PROFIT(Q)

Highest at JPY 1,398 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.97 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,437 MM

NET PROFIT(Q)

At JPY 986 MM has Grown at 113.42%

EPS(Q)

Highest at JPY 109.34

-14What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.13 times

INTEREST(Q)

Highest at JPY 34 MM

Here's what is working for Toyo Denki Seizo KK

Operating Profit

Highest at JPY 1,398 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 12.97 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,437 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 1,437 MM has Grown at 91.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 986 MM has Grown at 113.42%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 109.34

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 8,552 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -20.6% (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 Toyo Denki Seizo KK

Interest

At JPY 34 MM has Grown at 21.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 34 MM

in the last five periods and Increased by 21.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 2.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio