Chichibu Railway Co., Ltd. (9012) 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

Chichibu Railway Co., Ltd.

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Kyushu Railway Co.

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Kobe Electric Railway Co. Ltd.

Why is Chichibu Railway Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.67%

The company has been able to generate a Return on Capital Employed (avg) of 0.67% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 5.31% and Operating profit at 22.87% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 0.67% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 5.31% and Operating profit at 22.87% over the last 5 years

With a growth in Net Profit of 157.49%, the company declared Very Positive results in Jun 26

ROCE(HY) Highest at 9.34%
DEBT-EQUITY RATIO (HY) Lowest at 81.92 %
RAW MATERIAL COST(Y) Fallen by -8.43% (YoY)

With ROE of 6.87%, it has a fair valuation with a 0.61 Price to Book Value

Over the past year, while the stock has generated a return of 4.98%, its profits have risen by 298.4% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chichibu Railway Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Chichibu Railway Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chichibu Railway Co., Ltd.

4.98%

0.40

14.79%

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)

5.31%

EBIT Growth (5y)

22.87%

EBIT to Interest (avg)

-1.94

Debt to EBITDA (avg)

41.32

Net Debt to Equity (avg)

0.89

Sales to Capital Employed (avg)

0.49

Tax Ratio

8.66%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.73%

ROE (avg)

6.76%

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

0.61

EV to EBIT

19.36

EV to EBITDA

13.09

EV to Capital Employed

0.79

EV to Sales

1.44

PEG Ratio

0.03

Dividend Yield

0.05%

ROCE (Latest)

4.09%

ROE (Latest)

6.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

16What is working for the Company

ROCE(HY)

Highest at 9.34%

DEBT-EQUITY RATIO (HY)

Lowest at 81.92 %

RAW MATERIAL COST(Y)

Fallen by -8.43% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 17.35 times

PRE-TAX PROFIT(Q)

At JPY 167.67 MM has Grown at 113.76%

NET PROFIT(Q)

Highest at JPY 195.65 MM

EPS(Q)

Highest at JPY 131.73

-7What is not working for the Company

INTEREST(HY)

At JPY 37.12 MM has Grown at 17.66%

Here's what is working for Chichibu Railway Co., Ltd.

Net Profit

At JPY 195.65 MM has Grown at 157.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 81.92 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Pre-Tax Profit

At JPY 167.67 MM has Grown at 113.76%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 195.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 131.73

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 17.35 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 -8.43% (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 57.11 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 Chichibu Railway Co., Ltd.

Interest

At JPY 37.12 MM has Grown at 17.66%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)