TS TECH CO., LTD. (7313) 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

Sumitomo Rubber Industries, Ltd.

Bridgestone Corp.

Toyo Tire Corp.

The Yokohama Rubber Co., Ltd.

TS TECH CO., LTD.

JVCKenwood Corp.

Why is TS TECH CO., LTD. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 91.10

Poor long term growth as Net Sales has grown by an annual rate of 5.20% and Operating profit at -12.59% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 163 MM has Grown at 34.71%
OPERATING CASH FLOW(Y) Lowest at JPY 22,607 MM
DEBT-EQUITY RATIO (HY) Highest at -27.85 %

With ROE of 2.63%, it has a very attractive valuation with a 0.73 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 4.32%, its profits have fallen by -27%

Underperformed the market in the last 1 year

The stock has generated a return of 4.32% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TS TECH CO., LTD. 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 TS TECH CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TS TECH CO., LTD.

-100.0%

-0.37

19.02%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.20%

EBIT Growth (5y)

-12.59%

EBIT to Interest (avg)

91.10

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.42

Tax Ratio

44.27%

Dividend Payout Ratio

117.43%

Pledged Shares

Institutional Holding

0.40%

ROCE (avg)

11.75%

ROE (avg)

5.59%

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

0.73

EV to EBIT

14.40

EV to EBITDA

5.97

EV to Capital Employed

0.64

EV to Sales

0.34

PEG Ratio

Dividend Yield

ROCE (Latest)

4.42%

ROE (Latest)

2.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

9What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 6.29

NET SALES(Q)

Highest at JPY 132,348 MM

PRE-TAX PROFIT(Q)

Highest at JPY 5,685 MM

NET PROFIT(Q)

At JPY 2,477 MM has Grown at 91.46%

-13What is not working for the Company

INTEREST(HY)

At JPY 163 MM has Grown at 34.71%

OPERATING CASH FLOW(Y)

Lowest at JPY 22,607 MM

DEBT-EQUITY RATIO (HY)

Highest at -27.85 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.12 times

RAW MATERIAL COST(Y)

Grown by 11.83% (YoY

CASH AND EQV(HY)

Lowest at JPY 170,048 MM

Here's what is working for TS TECH CO., LTD.

Dividend per share

Highest at JPY 6.29 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 132,348 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 132,348 MM has Grown at 22.87%

over average net sales of the previous four periods of JPY 107,715.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 5,685 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 5,685 MM has Grown at 54.12%

over average net sales of the previous four periods of JPY 3,688.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,477 MM has Grown at 91.46%

over average net sales of the previous four periods of JPY 1,293.75 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Here's what is not working for TS TECH CO., LTD.

Interest

At JPY 163 MM has Grown at 34.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 22,607 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Debt-Equity Ratio

Highest at -27.85 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 9.12 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Cash and Eqv

Lowest at JPY 170,048 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 11.83% (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