TSE:3433Machinery
TOCALO (TSE:3433) Stock Revenue Climbs While EPS Momentum Fades
TOCALOLtd stock comes into this earnings print looking stretched, with a P/E of 18x against a cheaper machinery peer group and a share price that has slipped over the past three months. The earnings headline is not revenue growth; it is the pressure on profits. Quarterly basic EPS of ¥44.01 sits well below the recent peak of ¥60.82, and net income of ¥2,617m now has to carry a premium valuation and a dividend that is not well covered by free cash flow.
Is TOCALOLtd’s 18x P/E still justified...