Zenrin Co., Ltd. (9474) 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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Zenrin Co., Ltd.

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Why is Zenrin Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.46%

The company has been able to generate a Return on Equity (avg) of 5.46% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 13.66% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.46% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.40% and Operating profit at 13.66% over the last 5 years

The company has declared negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 10 MM has Grown at 11.11%
INTEREST COVERAGE RATIO(Q) Lowest at 10,925
RAW MATERIAL COST(Y) Grown by 10.02% (YoY)

Below par performance in long term as well as near term

Along with generating -20.04% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.40%

EBIT Growth (5y)

13.66%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

1.24

Tax Ratio

33.35%

Dividend Payout Ratio

81.89%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

6.94%

ROE (avg)

5.46%

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

1.01

EV to EBIT

10.30

EV to EBITDA

4.16

EV to Capital Employed

1.02

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

9.87%

ROE (Latest)

5.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-23What is not working for the Company

INTEREST(HY)

At JPY 10 MM has Grown at 11.11%

INTEREST COVERAGE RATIO(Q)

Lowest at 10,925

RAW MATERIAL COST(Y)

Grown by 10.02% (YoY

CASH AND EQV(HY)

Lowest at JPY 23,412 MM

NET SALES(Q)

Lowest at JPY 13,726 MM

OPERATING PROFIT(Q)

Lowest at JPY 437 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.18 %

PRE-TAX PROFIT(Q)

Lowest at JPY -356 MM

NET PROFIT(Q)

Lowest at JPY -241 MM

EPS(Q)

Lowest at JPY -4.51

Here's what is working for Zenrin Co., Ltd.

Depreciation

Highest at JPY 1,448 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 Zenrin Co., Ltd.

Pre-Tax Profit

At JPY -356 MM has Fallen at -513.79%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -241 MM has Fallen at -107.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 10 MM has Grown at 11.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 10,925

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 13,726 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 437 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.18 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -356 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 -241 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -4.51

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 23,412 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 10.02% (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