Yodogawa Steel Works, Ltd. (5451) 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

Toyota Tsusho Corp.

Okaya & Co., Ltd.

NIPPON STEEL CORP.

Yamato Kogyo Co., Ltd.

Sojitz Corp.

Yodogawa Steel Works, Ltd.

JFE Holdings, Inc.

Daido Steel Co., Ltd.

Kobe Steel, Ltd.

Tokyo Steel Manufacturing Co., Ltd.

Sanyo Special Steel Co., Ltd.

Why is Yodogawa Steel Works, Ltd. ?

Poor Management Efficiency with a low ROE of 6.65%

The company has been able to generate a Return on Equity (avg) of 6.65% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 6.65%

Poor long term growth as Net Sales has grown by an annual rate of 6.75% and Operating profit at 12.68% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 6.65% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.75% and Operating profit at 12.68% over the last 5 years

Positive results in Jun 26

NET PROFIT(HY) At JPY 11,781.35 MM has Grown at 96.24%
ROCE(HY) Highest at 9.15%
INTEREST COVERAGE RATIO(Q) Highest at 28,183.33

With ROE of 6.53%, it has a very attractive valuation with a 0.99 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 11.03%, its profits have fallen by -23.7%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yodogawa Steel Works, Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Yodogawa Steel Works, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yodogawa Steel Works, Ltd.

9.68%

-2.74

26.70%

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)

6.75%

EBIT Growth (5y)

12.68%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

1.05

Tax Ratio

5.50%

Dividend Payout Ratio

75.53%

Pledged Shares

Institutional Holding

0.20%

ROCE (avg)

9.68%

ROE (avg)

6.65%

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

0.99

EV to EBIT

11.04

EV to EBITDA

7.96

EV to Capital Employed

0.99

EV to Sales

0.68

PEG Ratio

Dividend Yield

ROCE (Latest)

8.96%

ROE (Latest)

6.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly 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

11What is working for the Company

NET PROFIT(HY)

At JPY 11,781.35 MM has Grown at 96.24%

ROCE(HY)

Highest at 9.15%

INTEREST COVERAGE RATIO(Q)

Highest at 28,183.33

RAW MATERIAL COST(Y)

Fallen by -2.17% (YoY

CASH AND EQV(HY)

Highest at JPY 136,880 MM

DEBT-EQUITY RATIO (HY)

Lowest at -28.87 %

PRE-TAX PROFIT(Q)

Highest at JPY 5,945 MM

-3What is not working for the Company

INTEREST(Q)

At JPY 18 MM has Grown at 12.5%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.71 times

Here's what is working for Yodogawa Steel Works, Ltd.

Interest Coverage Ratio

Highest at 28,183.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At JPY 11,781.35 MM has Grown at 96.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 5,945 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 136,880 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -28.87 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.17% (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 Yodogawa Steel Works, Ltd.

Interest

At JPY 18 MM has Grown at 12.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio