Dai Nippon Toryo Co., Ltd. (4611) 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

Chugoku Marine Paints, Ltd.

Sakata Inx Corp.

Nippon Aqua Co., Ltd.

TOCALO Co., Ltd.

Nippon Carbon Co., Ltd.

Fujimori Kogyo Co., Ltd.

Central Glass Co., Ltd.

Matsumoto Yushi-Seiyaku Co., Ltd.

Dai Nippon Toryo Co., Ltd.

Rock Paint Co., Ltd.

T&K Toka Co., Ltd.

Why is Dai Nippon Toryo Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 53.41

Poor long term growth as Net Sales has grown by an annual rate of -0.05% and Operating profit at -3.49% over the last 5 years

Negative results in Jun 25

PRE-TAX PROFIT(Q) At JPY 873 MM has Fallen at -52.92%
NET PROFIT(Q) At JPY 382 MM has Fallen at -71.92%
INVENTORY TURNOVER RATIO(HY) Lowest at 4.05%

With ROE of 8.28%, it has a very attractive valuation with a 0.53 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 14.52%, its profits have risen by 6% ; the PEG ratio of the company is 1.1
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 14.52% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dai Nippon Toryo Co., 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 Dai Nippon Toryo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dai Nippon Toryo Co., Ltd.

13.33%

0.31

24.85%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.05%

EBIT Growth (5y)

-3.49%

EBIT to Interest (avg)

53.41

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.11

Tax Ratio

18.02%

Dividend Payout Ratio

14.79%

Pledged Shares

Institutional Holding

ROCE (avg)

7.24%

ROE (avg)

6.58%

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

0.53

EV to EBIT

7.28

EV to EBITDA

4.74

EV to Capital Employed

0.53

EV to Sales

0.47

PEG Ratio

1.06

Dividend Yield

0.04%

ROCE (Latest)

7.21%

ROE (Latest)

8.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

5What is working for the Company

ROCE(HY)

Highest at 14.07%

CASH AND EQV(HY)

Highest at JPY 24,403 MM

NET SALES(Q)

At JPY 22,300 MM has Grown at 23.02%

-29What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 873 MM has Fallen at -52.92%

NET PROFIT(Q)

At JPY 382 MM has Fallen at -71.92%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.05%

INTEREST(Q)

At JPY 54 MM has Grown at 107.69%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,598.15

RAW MATERIAL COST(Y)

Grown by 10.74% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 5.31 %

OPERATING PROFIT MARGIN(Q)

Lowest at 6.29 %

EPS(Q)

Lowest at JPY 13.34

Here's what is working for Dai Nippon Toryo Co., Ltd.

Net Sales

Highest at JPY 22,300 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 22,300 MM has Grown at 23.02%

over average net sales of the previous four periods of JPY 18,127.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 24,403 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 698 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 Nippon Toryo Co., Ltd.

Pre-Tax Profit

At JPY 873 MM has Fallen at -52.92%

over average net sales of the previous four periods of JPY 1,854.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 382 MM has Fallen at -71.92%

over average net sales of the previous four periods of JPY 1,360.52 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 54 MM has Grown at 107.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,598.15

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 4.05% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 54 MM

in the last five periods and Increased by 107.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 6.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 873 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 382 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 13.34

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 5.31 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 10.74% (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