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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Asahi Kagaku Kogyo Co., Ltd. ?

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

Weak Long Term Fundamental Strength with a 0.43% CAGR growth in Net Sales over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.33% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.43% over the last 5 years

Negative results in May 26

INVENTORY TURNOVER RATIO(HY) Lowest at 11.86 times
PRE-TAX PROFIT(Q) Lowest at JPY 6.59 MM
NET PROFIT(Q) Lowest at JPY -6.25 MM

Underperformed the market in the last 1 year

The stock has generated a return of 1.43% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Asahi Kagaku Kogyo Co., Ltd.

1.75%

0.85

14.30%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.43%

EBIT Growth (5y)

-35.24%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.26

Sales to Capital Employed (avg)

1.55

Tax Ratio

65.58%

Dividend Payout Ratio

66.34%

Pledged Shares

Institutional Holding

ROCE (avg)

5.40%

ROE (avg)

5.33%

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

0.42

EV to EBIT

10.28

EV to EBITDA

1.37

EV to Capital Employed

0.13

EV to Sales

0.06

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

1.29%

ROE (Latest)

1.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.42% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -36.77 %

DEBTORS TURNOVER RATIO(HY)

Highest at 10.17 times

-14What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.86 times

PRE-TAX PROFIT(Q)

Lowest at JPY 6.59 MM

NET PROFIT(Q)

Lowest at JPY -6.25 MM

EPS(Q)

Lowest at JPY -2.06

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

Debt-Equity Ratio

Lowest at -36.77 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 10.17 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -9.42% (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 104.65 MM

in the last five periods

MOJO 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.

Pre-Tax Profit

At JPY 6.59 MM has Fallen at -83.74%

over average net sales of the previous four periods of JPY 40.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -6.25 MM has Fallen at -133.58%

over average net sales of the previous four periods of JPY 18.6 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 6.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -6.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -2.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 11.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 4 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income