Unozawa-Gumi Iron Works, Ltd. (6396) 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

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Unozawa-Gumi Iron Works, Ltd.

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Meiji Machine Co., Ltd.

Why is Unozawa-Gumi Iron Works, Ltd. ?

High Management Efficiency with a high ROCE of 16.14%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 16.14%

Positive results in Mar 26

INTEREST COVERAGE RATIO(Q) Highest at 5,099.14
RAW MATERIAL COST(Y) Fallen by -22.48% (YoY)
CASH AND EQV(HY) Highest at JPY 5,489.26 MM

With ROCE of 15.41%, it has a attractive valuation with a 1.38 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 31.70%, its profits have fallen by -22.8%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 31.70% 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 Unozawa-Gumi Iron Works, Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

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

Is Unozawa-Gumi Iron Works, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Unozawa-Gumi Iron Works, Ltd.

31.7%

1.23

30.26%

Japan Nikkei 225

85.83%

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)

1.50%

EBIT Growth (5y)

13.75%

EBIT to Interest (avg)

23.35

Debt to EBITDA (avg)

0.21

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.96

Tax Ratio

35.68%

Dividend Payout Ratio

13.91%

Pledged Shares

Institutional Holding

ROCE (avg)

16.14%

ROE (avg)

10.64%

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

8.94

EV to EBITDA

6.20

EV to Capital Employed

1.38

EV to Sales

0.84

PEG Ratio

Dividend Yield

ROCE (Latest)

15.41%

ROE (Latest)

9.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

16What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 5,099.14

RAW MATERIAL COST(Y)

Fallen by -22.48% (YoY

CASH AND EQV(HY)

Highest at JPY 5,489.26 MM

NET SALES(Q)

Highest at JPY 1,506.28 MM

OPERATING PROFIT(Q)

Highest at JPY 342.71 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.75 %

PRE-TAX PROFIT(Q)

Highest at JPY 324.84 MM

NET PROFIT(Q)

Highest at JPY 220.1 MM

EPS(Q)

Highest at JPY 199.3

-13What is not working for the Company

ROCE(HY)

Lowest at 12.12%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 25.09%

INTEREST(Q)

Highest at JPY 6.72 MM

Here's what is working for Unozawa-Gumi Iron Works, Ltd.

Net Sales

At JPY 1,506.28 MM has Grown at 28.01%

over average net sales of the previous four periods of JPY 1,176.68 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Interest Coverage Ratio

Highest at 5,099.14

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At JPY 324.84 MM has Grown at 154.38%

over average net sales of the previous four periods of JPY 127.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 220.1 MM has Grown at 163.04%

over average net sales of the previous four periods of JPY 83.68 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 1,506.28 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 342.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 22.75 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 324.84 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 220.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 199.3

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 5,489.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -22.48% (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 61.03 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 61.03 MM has Grown at 27.25%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Unozawa-Gumi Iron Works, Ltd.

Interest

At JPY 6.72 MM has Grown at 21.74%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 6.72 MM

in the last five periods and Increased by 21.74% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend Payout Ratio

Lowest at 25.09%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)