YASKAWA Electric Corp. (6506) 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

Hitachi Ltd.

Tokyo Electron Ltd.

FANUC Corp.

DAIKIN INDUSTRIES Ltd.

Daifuku Co., Ltd.

YASKAWA Electric Corp.

DISCO Corp.

OMRON Corp.

TOSHIBA Corp.

SMC Corp. (Japan)

Toyota Industries Corp.

Why is YASKAWA Electric Corp. ?

High Management Efficiency with a high ROCE of 13.54%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 24.30

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 13.54%

Flat results in May 25

INTEREST(HY) At JPY 2,728 MM has Grown at 95%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.59%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.17%

With ROCE of 10.46%, it has a attractive valuation with a 1.92 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 19.20%, its profits have fallen by -25.6%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to YASKAWA Electric Corp. 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 YASKAWA Electric Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

YASKAWA Electric Corp.

19.2%

261.45

56.44%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.52%

EBIT Growth (5y)

17.89%

EBIT to Interest (avg)

25.18

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

1.15

Tax Ratio

27.37%

Dividend Payout Ratio

31.10%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

13.46%

ROE (avg)

11.62%

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

2.01

EV to EBIT

18.35

EV to EBITDA

12.90

EV to Capital Employed

1.92

EV to Sales

1.68

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

10.46%

ROE (Latest)

8.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.99% (YoY

-16What is not working for the Company

INTEREST(HY)

At JPY 2,728 MM has Grown at 95%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.59%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.17%

NET SALES(Q)

Lowest at JPY 125,642 MM

OPERATING PROFIT(Q)

Lowest at JPY 14,493 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.54 %

PRE-TAX PROFIT(Q)

Lowest at JPY 9,729 MM

NET PROFIT(Q)

Lowest at JPY 6,952 MM

EPS(Q)

Lowest at JPY 26.78

Here's what is working for YASKAWA Electric Corp.

Raw Material Cost

Fallen by -0.99% (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 YASKAWA Electric Corp.

Interest

At JPY 2,728 MM has Grown at 95%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 1.59% 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

Net Sales

Lowest at JPY 125,642 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 14,493 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 11.54 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 9,729 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 6,952 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 26.78

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 3.17%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income