【Stock Price Forecast】 Is Elecom Corporation an undervalued stock? I analyze when to buy!

Hello everyone. I’m @olivertomolife, and I’m a sucker for investing and shareholder special offers!





With the surge of remote work around the world, what do you think are the computer accessories that are increasingly in demand?





That’s right, the demand for computer peripherals such as mice and keywords is expanding these days.





In this context, Elecom Corporation, which I will introduce here, develops and manufactures computer peripherals, and supports our lives behind the scenes.





I would like to analyze the company’s business activities as well as the best time to buy the stock.





This information is also useful for beginners, so please read through to the end.

The author has been investing for three years and has experience in the securities industry.





By reading this article, you’ll learn all you need to know about Elecom Corporation!

When to buy Elecom Corporation?

In conclusion, I think it’s time to buy when the stock price falls below 1400 yen.





Since July of 2020, the stock has been in a box market, moving between 2,700 yen and 2,300 yen.





However, since the stock split in April 2021, the stock price has been in a downward trend and has not been able to confirm the bottom.





Since there is no strong impact from the financial results, I think it is better to buy after confirming the bottom.





In addition, the company has not increased its dividend much and has a lot of retained earnings, so I would like to see the company improve in the future.





However, it is an undervalued blue-chip company, so it is always a good idea to target the right time to buy.

What is Elecom Corporation?

6750 Elecom Corporation was established in 1986 as a company that sold computer desks to electronics retail stores.





Later, the company began selling computer peripherals, such as mice and keyboards, and expanded its business.





The company has affiliates in Korea, China, the Philippines, and other countries, and is developing a wide range of business both domestically and internationally.





The company has won numerous awards for its ability to develop products with high design quality.

Company’s Business

We develop and sell products related to personal computers and digital devices.





By working from the very beginning of the process, we have the advantage of being able to respond flexibly to a variety of situations.





We handle more than 20,000 products and have developed a wide range of products from mice to computer connection devices.





We have strict quality control and provide our customers with high quality products without compromise.

Company Indicators

The following is a summary of Elecom Corporation’s indices.

PER	PBR	Equity ratio	Dividend yield	Dividend payout ratio	Market capitalization
14.4 times	2.05 times	72.5%	2.12%	28.9%	29th

The PER is lower than the standard 15x and undervalued, and the capital adequacy ratio is over 70%.





The dividend is low, but the payout ratio is also low, so we can expect dividend increases in the future.

Recommended investment trusts

There are some people who have just started investing and are afraid to buy stocks out of the blue.





For those people, I recommend asset management using mutual funds.





Mutual funds are diversified investments in a variety of stocks, so you can invest with less risk.





Here are three mutual funds that incorporate Elecom, which closes once a year.





1 Leos Capital Works Hifumi Plus





2 Nikko Asset Management GW7 Egg





3 Mitsubishi UFJ International Investment Trust Japanese Dream Open

Summary

I have introduced Elecom Corporation!





Investing is your own responsibility. Refer to a variety of opinions and make your own final decision.





Please stay tuned as we continue to provide useful information for investment.





Thank you for reading to the end!