Zojirushi Corp. (7965) 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

Yokowo Co. Ltd.

Tamron Co., Ltd.

Doshisha Co., Ltd.

Casio Computer Co., Ltd.

Hirata Corp.

Zojirushi Corp.

Panasonic Holdings Corp.

FUJIFILM Holdings Corp.

Ushio, Inc.

Sharp Corp.

YA-MAN Ltd.

Why is Zojirushi Corp. ?

Poor Management Efficiency with a low ROE of 5.98%

The company has been able to generate a Return on Equity (avg) of 5.98% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 5.90% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.98% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.16% and Operating profit at 5.90% over the last 5 years

Flat results in May 26

INTEREST(HY) At JPY 28 MM has Grown at 21.74%
INTEREST COVERAGE RATIO(Q) Lowest at 11,846.15
CASH AND EQV(HY) Lowest at JPY 66,791 MM

With ROE of 7.06%, it has a expensive valuation with a 1.16 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 -22.26%, its profits have risen by 3.5% ; the PEG ratio of the company is 4.7
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 Zojirushi Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Zojirushi Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zojirushi Corp.

-21.42%

-0.21

25.21%

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)

4.16%

EBIT Growth (5y)

5.90%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.99

Tax Ratio

30.91%

Dividend Payout Ratio

43.34%

Pledged Shares

Institutional Holding

ROCE (avg)

12.70%

ROE (avg)

5.98%

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

1.16

EV to EBIT

8.76

EV to EBITDA

6.87

EV to Capital Employed

1.25

EV to Sales

0.80

PEG Ratio

4.70

Dividend Yield

0.10%

ROCE (Latest)

14.22%

ROE (Latest)

7.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 188.76%

RAW MATERIAL COST(Y)

Fallen by 1.98% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 6.2

-7What is not working for the Company

INTEREST(HY)

At JPY 28 MM has Grown at 21.74%

INTEREST COVERAGE RATIO(Q)

Lowest at 11,846.15

CASH AND EQV(HY)

Lowest at JPY 66,791 MM

Here's what is working for Zojirushi Corp.

Dividend per share

Highest at JPY 6.2

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 188.76%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.98% (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

Depreciation

Highest at JPY 661 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 Zojirushi Corp.

Interest

At JPY 28 MM has Grown at 21.74%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 11,846.15

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Cash and Eqv

Lowest at JPY 66,791 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents