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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hitachi Ltd.

Daifuku Co., Ltd.

DAIKIN INDUSTRIES Ltd.

FANUC Corp.

Tokyo Electron Ltd.

DISCO Corp.

TOSHIBA Corp.

YASKAWA Electric Corp.

SMC Corp. (Japan)

Toyota Industries Corp.

OMRON 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 Nov 25

ROCE(HY) Lowest at 8.43%
CASH AND EQV(HY) Lowest at JPY 92,022 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 3.13 times

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 7.13%, its profits have fallen by -25.6%
At the current price, the company has a high dividend yield of 0.1

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 7.13% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.30%

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.

7.13%

223.84

59.16%

Japan Nikkei 225

40.96%

1.35

28.28%

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)

1.09

Tax Ratio

27.37%

Dividend Payout Ratio

31.10%

Pledged Shares

Institutional Holding

0.01%

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

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.81% (YoY

-6What is not working for the Company

ROCE(HY)

Lowest at 8.43%

CASH AND EQV(HY)

Lowest at JPY 92,022 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.13 times

OPERATING PROFIT MARGIN(Q)

Lowest at 11.17 %

PRE-TAX PROFIT(Q)

Lowest at JPY 9,656 MM

Here's what is working for YASKAWA Electric Corp.

Raw Material Cost

Fallen by 1.81% (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.

Operating Profit Margin

Lowest at 11.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 9,656 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Cash and Eqv

Lowest at JPY 92,022 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 3.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio