Yokota Manufacturing Co., Ltd. (6248) 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

Nomura Corp.

Placo Co., Ltd.

Unozawa-Gumi Iron Works, Ltd.

Yokota Manufacturing Co., Ltd.

Nitcho Corp.

Fuji Seiki Co., Ltd.

Tokuden Co., Ltd.

CONVUM Ltd.

KLASS Corp.

Takeda Machinery Co., Ltd.

TSUDAKOMA Corp.

Why is Yokota Manufacturing Co., Ltd. ?

Weak Long Term Fundamental Strength with a 11.56% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 4.60% and Operating profit at 11.56% over the last 5 years

Flat results in Mar 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 51.19%
RAW MATERIAL COST(Y) Grown by 10.82% (YoY)
DIVIDEND PER SHARE(HY) Lowest at JPY 5.52

With ROE of 11.75%, it has a attractive valuation with a 1.13 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 16.88%, its profits have risen by 14% ; the PEG ratio of the company is 0.7

Underperformed the market in the last 1 year

The stock has generated a return of 16.88% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yokota Manufacturing Co., 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 Yokota Manufacturing Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yokota Manufacturing Co., Ltd.

-100.0%

1.27

29.09%

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)

4.60%

EBIT Growth (5y)

11.56%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

0.78

Tax Ratio

28.82%

Dividend Payout Ratio

32.87%

Pledged Shares

Institutional Holding

ROCE (avg)

39.98%

ROE (avg)

8.51%

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

1.13

EV to EBIT

2.87

EV to EBITDA

2.54

EV to Capital Employed

1.35

EV to Sales

0.61

PEG Ratio

0.68

Dividend Yield

ROCE (Latest)

47.14%

ROE (Latest)

11.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 3,920.86 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.65 times

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 51.19%

RAW MATERIAL COST(Y)

Grown by 10.82% (YoY

DIVIDEND PER SHARE(HY)

Lowest at JPY 5.52

Here's what is working for Yokota Manufacturing Co., Ltd.

Cash and Eqv

Highest at JPY 3,920.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.65 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 19.49 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Yokota Manufacturing Co., Ltd.

Dividend per share

Lowest at JPY 5.52

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)

Dividend Payout Ratio

Lowest at 51.19%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 10.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales