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

Bridgestone Corp.

Sumitomo Rubber Industries, Ltd.

The Yokohama Rubber Co., Ltd.

Toyo Tire Corp.

TS TECH CO., LTD.

JVCKenwood Corp.

Why is TS TECH CO., LTD. ?

Weak Long Term Fundamental Strength with a -12.59% CAGR growth in Operating Profits over the last 5 years

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 Jun 26

OPERATING CASH FLOW(Y) Lowest at JPY 13,835 MM
INTEREST(Q) At JPY 84 MM has Grown at 21.74%
RAW MATERIAL COST(Y) Grown by 6.98% (YoY)

With ROE of 2.63%, it has a very attractive valuation with a 0.70 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 -3.06%, its profits have fallen by -27%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.06% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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.

-3.06%

-0.13

19.63%

Japan Nikkei 225

60.14%

2.04

29.37%

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)

58.83

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.44

Tax Ratio

39.01%

Dividend Payout Ratio

149.08%

Pledged Shares

Institutional Holding

0.40%

ROCE (avg)

8.67%

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

0.70

EV to EBIT

13.54

EV to EBITDA

5.62

EV to Capital Employed

0.60

EV to Sales

0.32

PEG Ratio

Dividend Yield

ROCE (Latest)

4.42%

ROE (Latest)

2.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

8What is working for the Company

NET PROFIT(HY)

At JPY 4,075 MM has Grown at 268.44%

DEBTORS TURNOVER RATIO(HY)

Highest at 7.16 times

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 13,835 MM

INTEREST(Q)

At JPY 84 MM has Grown at 21.74%

RAW MATERIAL COST(Y)

Grown by 6.98% (YoY

CASH AND EQV(HY)

Lowest at JPY 181,758 MM

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

Net Profit

At JPY 4,075 MM has Grown at 268.44%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 7.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Operating Cash Flow

Lowest at JPY 13,835 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)

Interest

At JPY 84 MM has Grown at 21.74%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 181,758 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 6.98% (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