Tsuzuki Denki Co., Ltd. (8157) 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

Core Concept Technologies, Inc.

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Smaregi, Inc.

Tsuzuki Denki Co., Ltd.

m-up holdings, Inc.

Softcreate Holdings Corp.

TechMatrix Corp.

JFE Systems, Inc.

Computer Engineering & Consulting Ltd.

TRE Holdings Corp.

Why is Tsuzuki Denki Co., Ltd. ?

High Management Efficiency with a high ROE of 10.50%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 49.41

The company declared positive results in Mar'25 after very negative results in Dec'24

RAW MATERIAL COST(Y) Fallen by -6.3% (YoY)
CASH AND EQV(HY) Highest at JPY 75,846 MM
PRE-TAX PROFIT(Q) At JPY 2,190 MM has Grown at 107.58%

With ROE of 10.85%, it has a very attractive valuation with a 1.30 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 51.27%, its profits have fallen by -16%
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 51.27% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Tsuzuki Denki Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Tsuzuki Denki Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Tsuzuki Denki Co., Ltd.

51.27%

1.55

34.91%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.76%

EBIT Growth (5y)

7.77%

EBIT to Interest (avg)

49.41

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.67

Sales to Capital Employed (avg)

2.29

Tax Ratio

28.52%

Dividend Payout Ratio

37.60%

Pledged Shares

Institutional Holding

ROCE (avg)

30.40%

ROE (avg)

10.50%

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

1.30

EV to EBIT

4.29

EV to EBITDA

3.55

EV to Capital Employed

1.90

EV to Sales

0.28

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

44.34%

ROE (Latest)

10.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.3% (YoY

CASH AND EQV(HY)

Highest at JPY 75,846 MM

PRE-TAX PROFIT(Q)

At JPY 2,190 MM has Grown at 107.58%

NET PROFIT(Q)

At JPY 1,506.77 MM has Grown at 110.33%

-9What is not working for the Company

INTEREST(Q)

Highest at JPY 29 MM

Here's what is working for Tsuzuki Denki Co., Ltd.

Pre-Tax Profit

At JPY 2,190 MM has Grown at 107.58%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,506.77 MM has Grown at 110.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 75,846 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -6.3% (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 Tsuzuki Denki Co., Ltd.

Interest

At JPY 29 MM has Grown at 20.83%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 29 MM

in the last five periods and Increased by 20.83% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)