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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sumitomo Rubber Industries, Ltd.

Toyo Tire Corp.

Bridgestone Corp.

The Yokohama Rubber Co., Ltd.

JVCKenwood Corp.

TS TECH CO., LTD.

Why is Toyo Tire Corp. ?

High Management Efficiency with a high ROCE of 15.34%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 48.68

Healthy long term growth as Net Sales has grown by an annual rate of 9.19%

With ROCE of 19.62%, it has a very attractive valuation with a 1.00 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 83.68%, its profits have fallen by -18%
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 83.68% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you buy?

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, High Return

Absolute

Risk Adjusted

Volatility

Toyo Tire Corp.

78.51%

1.98

29.63%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.19%

EBIT Growth (5y)

20.76%

EBIT to Interest (avg)

48.68

Debt to EBITDA (avg)

0.81

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.08

Tax Ratio

25.62%

Dividend Payout Ratio

24.70%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

15.34%

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

1.00

EV to EBIT

5.09

EV to EBITDA

3.66

EV to Capital Employed

1.00

EV to Sales

0.80

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

19.62%

ROE (Latest)

15.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

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

DEBT-EQUITY RATIO (HY)

Lowest at -3.48 %

INTEREST COVERAGE RATIO(Q)

Highest at 11,550.83

DIVIDEND PAYOUT RATIO(Y)

Highest at 46.61%

RAW MATERIAL COST(Y)

Fallen by -3.68% (YoY

CASH AND EQV(HY)

Highest at JPY 177,454 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 4.7

NET SALES(Q)

Highest at JPY 147,900 MM

EPS(Q)

Highest at JPY 128.74

-4What is not working for the Company

INTEREST(9M)

At JPY 1,080 MM has Grown at 19.34%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.75%

Here's what is working for Toyo Tire Corp.

Interest Coverage Ratio

Highest at 11,550.83

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 -3.48 % 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

Net Sales

Highest at JPY 147,900 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

EPS

Highest at JPY 128.74

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 177,454 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 4.7

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 46.61%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.68% (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 9,011 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.

Interest

At JPY 1,080 MM has Grown at 19.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 2.75%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio