Dai-Ichi Cutter Kogyo KK (1716) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DAISUE CONSTRUCTION CO., LTD.

Kyowanissei Co., Ltd.

Tanabe Engineering Corp.

Novac Co., Ltd.

Sanko Metal Industrial Co., Ltd.

Taisei Oncho Co., Ltd.

Dai-Ichi Cutter Kogyo KK

THE NIPPON ROAD CO., LTD.

OHBA Co., Ltd.

Br. Holdings Corp.

Lib Work Co., Ltd.

Why is Dai-Ichi Cutter Kogyo KK ?

High Management Efficiency with a high ROE of 11.39%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate -3.31% of over the last 5 years

The company declared very negative results in Mar'25 after flat results in Dec'24

INTEREST(HY) At JPY 0.93 MM has Grown at 41.52%
NET PROFIT(HY) At JPY 521.8 MM has Grown at -53.85%
ROCE(HY) Lowest at 7.1%

With ROE of 8.78%, it has a very attractive valuation with a 0.87 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 -8.64%, its profits have fallen by -5.4%

Below par performance in long term as well as near term

Along with generating -8.64% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dai-Ichi Cutter Kogyo KK 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 Dai-Ichi Cutter Kogyo KK for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dai-Ichi Cutter Kogyo KK

-8.64%

-0.74

19.53%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.71%

EBIT Growth (5y)

-3.31%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

1.19

Tax Ratio

29.09%

Dividend Payout Ratio

33.98%

Pledged Shares

Institutional Holding

ROCE (avg)

30.94%

ROE (avg)

11.39%

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

0.87

EV to EBIT

3.31

EV to EBITDA

2.32

EV to Capital Employed

0.73

EV to Sales

0.31

PEG Ratio

Dividend Yield

ROCE (Latest)

22.14%

ROE (Latest)

8.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

DIVIDEND PER SHARE(HY)

Highest at JPY 4.7

DIVIDEND PAYOUT RATIO(Y)

Highest at 148.2%

CASH AND EQV(HY)

Highest at JPY 20,128.17 MM

-20What is not working for the Company

INTEREST(HY)

At JPY 0.93 MM has Grown at 41.52%

NET PROFIT(HY)

At JPY 521.8 MM has Grown at -53.85%

ROCE(HY)

Lowest at 7.1%

PRE-TAX PROFIT(Q)

Lowest at JPY 293.26 MM

RAW MATERIAL COST(Y)

Grown by 14.12% (YoY

Here's what is working for Dai-Ichi Cutter Kogyo KK

Dividend per share

Highest at JPY 4.7 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 20,128.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 148.2%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 229 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 Dai-Ichi Cutter Kogyo KK

Interest

At JPY 0.93 MM has Grown at 41.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 521.8 MM has Grown at -53.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 293.26 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 293.26 MM has Fallen at -49.6%

over average net sales of the previous four periods of JPY 581.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Raw Material Cost

Grown by 14.12% (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