Why is Chugoku Marine Paints, Ltd. ?
1
Strong Long Term Fundamental Strength with a 34.47% CAGR growth in Operating Profits
- Company has a low Debt to Equity ratio (avg) at times
2
Positive results in Jun 25
- RAW MATERIAL COST(Y) Fallen by -2.72% (YoY)
- CASH AND EQV(HY) Highest at JPY 67,360 MM
- DEBT-EQUITY RATIO (HY) Lowest at -14.03 %
3
With ROE of 18.60%, it has a very attractive valuation with a 1.50 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 89.64%, its profits have risen by 38.9% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 0
4
Consistent Returns over the last 3 years
- Along with generating 89.64% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods
How much should you buy?
- Overall Portfolio exposure to Chugoku Marine Paints, Ltd. should be less than 10%
- Overall Portfolio exposure to Other Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Chugoku Marine Paints, Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Chugoku Marine Paints, Ltd.
89.64%
2.99
38.29%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
8.37%
EBIT Growth (5y)
34.47%
EBIT to Interest (avg)
16.60
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
1.24
Tax Ratio
14.83%
Dividend Payout Ratio
35.05%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.62%
ROE (avg)
9.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
1.50
EV to EBIT
6.97
EV to EBITDA
6.28
EV to Capital Employed
1.63
EV to Sales
0.82
PEG Ratio
0.21
Dividend Yield
0.02%
ROCE (Latest)
23.37%
ROE (Latest)
18.60%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Bullish
OBV
No Trend
No Trend
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.72% (YoY
CASH AND EQV(HY)
Highest at JPY 67,360 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -14.03 %
DEBTORS TURNOVER RATIO(HY)
Highest at 3.34%
-1What is not working for the Company
NET PROFIT(Q)
At JPY 2,531 MM has Fallen at -29.91%
Here's what is working for Chugoku Marine Paints, Ltd.
Cash and Eqv
Highest at JPY 67,360 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -14.03 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 3.34%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -2.72% (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 Chugoku Marine Paints, Ltd.
Net Profit
At JPY 2,531 MM has Fallen at -29.91%
over average net sales of the previous four periods of JPY 3,611.01 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)






