Toyo Tire Corp. (5105) 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

Bridgestone Corp.

Sumitomo Rubber Industries, Ltd.

The Yokohama Rubber Co., Ltd.

Toyo Tire Corp.

TS TECH CO., LTD.

JVCKenwood Corp.

Why is Toyo Tire Corp. ?

The company is Net-Debt Free

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 17.81% of over the last 5 years

Flat results in Jun 26

ROCE(HY) Lowest at 11.62%
RAW MATERIAL COST(Y) Grown by 11.24% (YoY)
OPERATING PROFIT(Q) Lowest at JPY 26,441 MM

With ROCE of 19.50%, it has a very attractive valuation with a 1.12 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 -5.14%, its profits have risen by 6.5% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 43.52% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -5.14% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Toyo Tire Corp. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Toyo Tire Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toyo Tire Corp.

-5.14%

1.00

37.06%

Japan Nikkei 225

43.52%

1.48

29.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.06%

EBIT Growth (5y)

17.81%

EBIT to Interest (avg)

65.64

Debt to EBITDA (avg)

0.58

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.04

Tax Ratio

28.60%

Dividend Payout Ratio

31.47%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

16.55%

ROE (avg)

16.04%

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

1.11

EV to EBIT

5.76

EV to EBITDA

4.18

EV to Capital Employed

1.12

EV to Sales

0.93

PEG Ratio

1.22

Dividend Yield

0.04%

ROCE (Latest)

19.50%

ROE (Latest)

14.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

7What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -9.32 %

INTEREST COVERAGE RATIO(Q)

Highest at 21,672.95

DIVIDEND PAYOUT RATIO(Y)

Highest at 71.71%

CASH AND EQV(HY)

Highest at JPY 217,595 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 4.6

-8What is not working for the Company

ROCE(HY)

Lowest at 11.62%

RAW MATERIAL COST(Y)

Grown by 11.24% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 26,441 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.25 %

PRE-TAX PROFIT(Q)

Lowest at JPY 18,176 MM

NET PROFIT(Q)

Lowest at JPY 14,055.12 MM

Here's what is working for Toyo Tire Corp.

Interest Coverage Ratio

Highest at 21,672.95

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at -9.32 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 217,595 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 4.6

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 71.71%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 9,553 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 Toyo Tire Corp.

Operating Profit

Lowest at JPY 26,441 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 17.25 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 18,176 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 18,176 MM has Fallen at -31.4%

over average net sales of the previous four periods of JPY 26,497.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 14,055.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 11.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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