Chuetsu Pulp & Paper Co., Ltd. (3877) 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

Nippon Kodoshi Corp.

Tomoegawa Corp.

Chuetsu Pulp & Paper Co., Ltd.

Rengo Co., Ltd.

Daio Paper Corp.

Tokushu Tokai Paper Co., Ltd.

Nippon Filcon Co., Ltd.

Nichiban Co., Ltd.

Mitsubishi Paper Mills Ltd.

Hokuetsu Corp.

Nippon Paper Industries Co., Ltd.

Why is Chuetsu Pulp & Paper Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.74%

The company has been able to generate a Return on Capital Employed (avg) of 3.74% 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 6.01% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.94% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.01% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

RAW MATERIAL COST(Y) Grown by 5.45% (YoY)
CASH AND EQV(HY) Lowest at JPY 9,466 MM
INTEREST(Q) Highest at JPY 102 MM

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 Paper, Forest & Jute Products)

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

Is Chuetsu Pulp & Paper Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chuetsu Pulp & Paper Co., Ltd.

27.38%

1.46

22.86%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.01%

EBIT Growth (5y)

32.95%

EBIT to Interest (avg)

13.88

Debt to EBITDA (avg)

3.28

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

1.16

Tax Ratio

25.14%

Dividend Payout Ratio

46.32%

Pledged Shares

Institutional Holding

ROCE (avg)

4.36%

ROE (avg)

4.94%

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

0.45

EV to EBIT

20.41

EV to EBITDA

6.37

EV to Capital Employed

0.64

EV to Sales

0.52

PEG Ratio

Dividend Yield

ROCE (Latest)

3.14%

ROE (Latest)

3.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 47.49 %

DIVIDEND PER SHARE(HY)

Highest at JPY 4.14

NET SALES(Q)

Highest at JPY 29,315 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,595 MM

EPS(Q)

Highest at JPY 105.45

-20What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.45% (YoY

CASH AND EQV(HY)

Lowest at JPY 9,466 MM

INTEREST(Q)

Highest at JPY 102 MM

NET PROFIT(Q)

Fallen at -41.15%

Here's what is working for Chuetsu Pulp & Paper Co., Ltd.

Net Sales

Highest at JPY 29,315 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 1,595 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 105.45

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 47.49 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at JPY 4.14

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for Chuetsu Pulp & Paper Co., Ltd.

Interest

At JPY 102 MM has Grown at 20%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 102 MM

in the last five periods and Increased by 20% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Fallen at -41.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 9,466 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 5.45% (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