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.

KATO WORKS CO., LTD.

Naikai Zosen Corp.

Alinco, Inc.

Nikko Co., Ltd. (6306)

Maruyama Mfg Co., Inc.

Terasaki Electric Co., Ltd.

Japan Engine Corp.

The Kinki Sharyo Co., Ltd.

Toyo Denki Seizo KK

Sakai Heavy Industries, Ltd.

Why is Toyo Denki Seizo KK ?

Poor Management Efficiency with a low ROCE of 2.28%

The company has been able to generate a Return on Capital Employed (avg) of 2.28% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -0.65% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 2.28% signifying low profitability per unit of total capital (equity and debt)

With a fall in Net Sales of -9.95%, the company declared Very Negative results in Nov 25

The company has declared negative results in Jan 70 after 2 consecutive negative quarters
INTEREST COVERAGE RATIO(Q) Lowest at 1,721.43
INVENTORY TURNOVER RATIO(HY) Lowest at 3.41 times
DEBTORS TURNOVER RATIO(HY) Lowest at 2.22 times

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 Automobiles)

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

Is Toyo Denki Seizo KK for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Toyo Denki Seizo KK

71.92%

2.94

43.23%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.65%

EBIT Growth (5y)

12.08%

EBIT to Interest (avg)

14.08

Debt to EBITDA (avg)

3.70

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

0.95

Tax Ratio

21.38%

Dividend Payout Ratio

30.28%

Pledged Shares

Institutional Holding

ROCE (avg)

2.83%

ROE (avg)

5.38%

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

0.50

EV to EBIT

10.72

EV to EBITDA

7.95

EV to Capital Employed

0.63

EV to Sales

0.57

PEG Ratio

0.07

Dividend Yield

0.07%

ROCE (Latest)

5.86%

ROE (Latest)

7.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

3What is working for the Company

ROCE(HY)

Highest at 8%

RAW MATERIAL COST(Y)

Fallen by -0.91% (YoY

-22What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,721.43

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.41 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.22 times

NET SALES(Q)

Fallen at -9.95%

INTEREST(Q)

Highest at JPY 28 MM

OPERATING PROFIT(Q)

Lowest at JPY 482 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.93 %

PRE-TAX PROFIT(Q)

Lowest at JPY 530 MM

NET PROFIT(Q)

Lowest at JPY 400 MM

EPS(Q)

Lowest at JPY 44.32

Here's what is working for Toyo Denki Seizo KK

Raw Material Cost

Fallen by -0.91% (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 Coverage Ratio

Lowest at 1,721.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 530 MM has Fallen at -44.96%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

Fallen at -9.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 28 MM

in the last five periods and Increased by 7.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 482 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 530 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 400 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -43.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 44.32

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 3.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio