Asahi Kagaku Kogyo Co., Ltd. (7928) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Asahi Kagaku Kogyo Co., Ltd.

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Takemoto Yohki Co., Ltd.

Tensho Electric Industries Co., Ltd.

SANKO TECHNO CO., LTD.

Nitchitsu Co., Ltd.

BALMUDA, Inc.

Sagami Rubber Industries Co., Ltd.

Why is Asahi Kagaku Kogyo Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.11%

The company has been able to generate a Return on Equity (avg) of 5.11% signifying low profitability per unit of shareholders funds

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 0.80% over the last 5 years

DEBTORS TURNOVER RATIO(HY) Highest at 9.71%

With ROE of 1.66%, it has a very attractive valuation with a 0.41 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 3.38%, its profits have fallen by -0.1%
At the current price, the company has a high dividend yield of 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 3.38% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.59%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Asahi Kagaku Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Asahi Kagaku Kogyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Asahi Kagaku Kogyo Co., Ltd.

-100.0%

0.47

16.11%

Japan Nikkei 225

38.59%

1.45

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.80%

EBIT Growth (5y)

-29.59%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.57

Tax Ratio

81.89%

Dividend Payout Ratio

66.34%

Pledged Shares

Institutional Holding

ROCE (avg)

9.53%

ROE (avg)

5.11%

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

0.41

EV to EBIT

34.55

EV to EBITDA

3.61

EV to Capital Employed

0.24

EV to Sales

0.11

PEG Ratio

Dividend Yield

0.17%

ROCE (Latest)

0.71%

ROE (Latest)

1.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 9.71%

-20What is not working for the Company

INTEREST(9M)

At JPY 0.3 MM has Grown at inf%

NET PROFIT(HY)

At JPY 30.72 MM has Grown at -65.57%

PRE-TAX PROFIT(Q)

At JPY 25.64 MM has Fallen at -48.87%

RAW MATERIAL COST(Y)

Grown by 9.91% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -25.91 %

NET SALES(Q)

Lowest at JPY 1,868.49 MM

Here's what is working for Asahi Kagaku Kogyo Co., Ltd.

Debtors Turnover Ratio

Highest at 9.71%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Asahi Kagaku Kogyo Co., Ltd.

Net Profit

At JPY 30.72 MM has Grown at -65.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 0.3 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 1,868.49 MM has Fallen at -17.01%

over average net sales of the previous four periods of JPY 2,251.58 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 25.64 MM has Fallen at -48.87%

over average net sales of the previous four periods of JPY 50.15 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

Lowest at JPY 1,868.49 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Debt-Equity Ratio

Highest at -25.91 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 9.91% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales