Chugai Ro Co., Ltd. (1964) 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

Marumae Co., Ltd.

Seibu Electric & Machinery Co., Ltd.

Sansei Technologies, Inc.

Futaba Corp.

Sanden Corp.

Chugai Ro Co., Ltd.

Maezawa Industries, Inc.

JUKI Corp.

Meiji Electric Industries Co., Ltd.

Techno Smart Corp.

Nissei Plastic Industrial Co., Ltd.

Why is Chugai Ro Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.45%

The company has been able to generate a Return on Equity (avg) of 6.45% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 49.23% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.45% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.60% and Operating profit at 49.23% over the last 5 years

The company has declared negative results in Jun'2026 after 2 consecutive positive quarters

INTEREST(Q) At JPY 19 MM has Grown at 18.75%
NET SALES(Q) Lowest at JPY 6,119 MM
PRE-TAX PROFIT(Q) Lowest at JPY -108 MM

With ROE of 14.91%, it has a very attractive valuation with a 1.00 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 2.17%, its profits have risen by 52.8% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chugai Ro Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Chugai Ro Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chugai Ro Co., Ltd.

0.64%

0.92

35.23%

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)

8.60%

EBIT Growth (5y)

49.23%

EBIT to Interest (avg)

35.41

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.01

Tax Ratio

27.58%

Dividend Payout Ratio

25.79%

Pledged Shares

Institutional Holding

ROCE (avg)

8.26%

ROE (avg)

6.45%

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

1.00

EV to EBIT

8.67

EV to EBITDA

7.30

EV to Capital Employed

1.00

EV to Sales

0.67

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

11.55%

ROE (Latest)

14.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -32.61% (YoY

NET PROFIT(9M)

Higher at JPY 3,538 MM

DEBT-EQUITY RATIO (HY)

Lowest at -9.73 %

INVENTORY TURNOVER RATIO(HY)

Highest at 14.39 times

-14What is not working for the Company

INTEREST(Q)

At JPY 19 MM has Grown at 18.75%

NET SALES(Q)

Lowest at JPY 6,119 MM

PRE-TAX PROFIT(Q)

Lowest at JPY -108 MM

NET PROFIT(Q)

Lowest at JPY -75 MM

EPS(Q)

Lowest at JPY -10.41

Here's what is working for Chugai Ro Co., Ltd.

Debt-Equity Ratio

Lowest at -9.73 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 14.39 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -32.61% (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

Here's what is not working for Chugai Ro Co., Ltd.

Pre-Tax Profit

At JPY -108 MM has Fallen at -110.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -75 MM has Fallen at -110.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 19 MM has Grown at 18.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 6,119 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY -108 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 -75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -10.41

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)