ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Arakawa Chemical Industries Ltd. ?
1
Poor Management Efficiency with a low ROCE of 1.91%
- The company has been able to generate a Return on Capital Employed (avg) of 1.91% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.81 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.81 times
- The company has been able to generate a Return on Equity (avg) of 1.96% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 1.92% and Operating profit at -24.04% over the last 5 years
4
Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at JPY 2,991 MM
- INTEREST COVERAGE RATIO(Q) Highest at 2,014.78
- RAW MATERIAL COST(Y) Fallen by -0.62% (YoY)
5
With ROE of 1.82%, it has a very attractive valuation with a 0.38 Price to Book Value
- Over the past year, while the stock has generated a return of 8.44%, its profits have risen by 132.2% ; the PEG ratio of the company is 0.2
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Arakawa Chemical Industries Ltd. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arakawa Chemical Industries Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Arakawa Chemical Industries Ltd.
8.44%
0.37
35.53%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.92%
EBIT Growth (5y)
-24.04%
EBIT to Interest (avg)
4.31
Debt to EBITDA (avg)
6.75
Net Debt to Equity (avg)
0.51
Sales to Capital Employed (avg)
0.78
Tax Ratio
62.96%
Dividend Payout Ratio
36.77%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.91%
ROE (avg)
1.96%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
0.38
EV to EBIT
79.95
EV to EBITDA
8.17
EV to Capital Employed
0.59
EV to Sales
0.65
PEG Ratio
0.16
Dividend Yield
NA
ROCE (Latest)
0.74%
ROE (Latest)
1.82%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 2,991 MM
INTEREST COVERAGE RATIO(Q)
Highest at 2,014.78
RAW MATERIAL COST(Y)
Fallen by -0.62% (YoY
NET SALES(Q)
Highest at JPY 21,006 MM
OPERATING PROFIT(Q)
Highest at JPY 2,317 MM
OPERATING PROFIT MARGIN(Q)
Highest at 11.03 %
PRE-TAX PROFIT(Q)
Highest at JPY 1,253 MM
NET PROFIT(Q)
Highest at JPY 703.87 MM
-11What is not working for the Company
INTEREST(HY)
At JPY 239 MM has Grown at 14.35%
NET PROFIT(9M)
At JPY 1,427.87 MM has Grown at -37.01%
DEBT-EQUITY RATIO
(HY)
Highest at 56.24 %
CASH AND EQV(HY)
Lowest at JPY 18,474 MM
Here's what is working for Arakawa Chemical Industries Ltd.
Operating Cash Flow
Highest at JPY 2,991 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Interest Coverage Ratio
Highest at 2,014.78
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At JPY 1,253 MM has Grown at 154.67%
over average net sales of the previous four periods of JPY 492 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Sales
Highest at JPY 21,006 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 2,317 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 11.03 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 1,253 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 703.87 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 703.87 MM has Grown at 62.37%
over average net sales of the previous four periods of JPY 433.5 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Raw Material Cost
Fallen by -0.62% (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
Here's what is not working for Arakawa Chemical Industries Ltd.
Interest
At JPY 239 MM has Grown at 14.35%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 56.24 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Cash and Eqv
Lowest at JPY 18,474 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
