ScoreWhy is Asahi Kagaku Kogyo Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 5.33%
- The company has been able to generate a Return on Equity (avg) of 5.33% signifying low profitability per unit of shareholders funds
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of 1.10% over the last 5 years
4
Flat results in Feb 26
- INTEREST(9M) At JPY 0.38 MM has Grown at inf%
- PRE-TAX PROFIT(Q) At JPY 26.04 MM has Fallen at -40.89%
- INVENTORY TURNOVER RATIO(HY) Lowest at 12.36 times
5
With ROE of 1.64%, it has a very expensive valuation with a 0.44 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 3.39%, its profits have fallen by -1.9%
- At the current price, the company has a high dividend yield of 0.2
6
Underperformed the market in the last 1 year
- The stock has generated a return of 3.39% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
Real-Time Research ReportHow 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%
0.53
13.67%
Japan Nikkei 225
75.22%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.10%
EBIT Growth (5y)
-43.14%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.26
Sales to Capital Employed (avg)
1.55
Tax Ratio
81.89%
Dividend Payout Ratio
66.34%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.53%
ROE (avg)
5.33%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
0.44
EV to EBIT
32.94
EV to EBITDA
1.88
EV to Capital Employed
0.15
EV to Sales
0.07
PEG Ratio
NA
Dividend Yield
0.16%
ROCE (Latest)
0.47%
ROE (Latest)
1.64%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
NET PROFIT(HY)
At JPY 32.82 MM has Grown at 489.85%
RAW MATERIAL COST(Y)
Fallen by -20.31% (YoY
OPERATING PROFIT(Q)
Highest at JPY 123.63 MM
OPERATING PROFIT MARGIN(Q)
Highest at 5.58 %
-13What is not working for the Company
INTEREST(9M)
At JPY 0.38 MM has Grown at inf%
PRE-TAX PROFIT(Q)
At JPY 26.04 MM has Fallen at -40.89%
INVENTORY TURNOVER RATIO(HY)
Lowest at 12.36 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.2 times
NET PROFIT(Q)
Lowest at JPY -2.71 MM
EPS(Q)
Lowest at JPY -0.89
Here's what is working for Asahi Kagaku Kogyo Co., Ltd.
Operating Profit
Highest at JPY 123.63 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 5.58 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Raw Material Cost
Fallen by -20.31% (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
Depreciation
Highest at JPY 100.83 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Asahi Kagaku Kogyo Co., Ltd.
Interest
At JPY 0.38 MM has Grown at inf%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY -2.71 MM has Fallen at -112.18%
over average net sales of the previous four periods of JPY 22.23 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Pre-Tax Profit
At JPY 26.04 MM has Fallen at -40.89%
over average net sales of the previous four periods of JPY 44.05 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -2.71 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -0.89
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Lowest at 12.36 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 9.2 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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