Yamada Denki Co., Ltd. shares have been stuck in a horizontal trading range. Investors could benefit from a return of the share price to the lower level of the trading range to build up new long positions.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The close medium term support offers good timing for purchasing the stock.
● The stock, which is currently worth 2021 to 0.34 times its sales, is clearly overvalued in comparison with peers.
● The company's attractive earnings multiples are brought to light by a P/E ratio at 12.55 for the current year.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● For the past twelve months, EPS forecast has been revised upwards.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● The company does not generate enough profits, which is an alarming weak point.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
Yamada Holdings Co Ltd is mainly engaged in the business of selling home appliances and information appliances. The Company operates through two business segments. The Denki segment is engaged in the sale of home appliances such as televisions, refrigerators, and washing machines, as well as information appliances such as PCs and cell phones, and home renovation, furniture, interior design, and other products related to the home. The Housing Construction segment is engaged in the sale of detached houses and other housing units, and manufacture and sale of bathrooms, kitchens, and other housing equipment. It also operates environmental businesses, financial businesses, and businesses related to building materials.
YAMADA HOLDINGS CO., LTD. 
