Daicel Corp. (4202) 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 Sanso Holdings Corp.

Nifco, Inc.

Tosoh Corp.

Sumitomo Chemical Co., Ltd.

Daicel Corp.

UBE Corp.

NOF Corp.

Shin-Etsu Chemical Co., Ltd.

Resonac Holdings Corp.

Air Water, Inc.

Mitsubishi Gas Chemical Co., Inc.

Why is Daicel Corp. ?

High Management Efficiency with a high ROCE of 9.84%

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 15.53% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.84%

Flat results in Dec 25

INTEREST(HY) At JPY 1,577 MM has Grown at 66%
ROCE(HY) Lowest at 10.77%
CASH AND EQV(HY) Lowest at JPY 140,532 MM

With ROCE of 10.60%, it has a very attractive valuation with a 0.95 Enterprise value to Capital Employed

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 -1.88%, its profits have fallen by -4.3%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -1.88% 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 Daicel Corp. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Daicel Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Daicel Corp.

-1.88%

536.16

28.38%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.28%

EBIT Growth (5y)

15.53%

EBIT to Interest (avg)

31.69

Debt to EBITDA (avg)

2.55

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

0.86

Tax Ratio

22.93%

Dividend Payout Ratio

33.07%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

9.84%

ROE (avg)

13.94%

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

0.92

EV to EBIT

8.98

EV to EBITDA

5.35

EV to Capital Employed

0.95

EV to Sales

0.93

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

10.60%

ROE (Latest)

15.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.6% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.3 times

PRE-TAX PROFIT(Q)

Highest at JPY 24,836 MM

NET PROFIT(Q)

Highest at JPY 16,901 MM

EPS(Q)

Highest at JPY 64.1

-12What is not working for the Company

INTEREST(HY)

At JPY 1,577 MM has Grown at 66%

ROCE(HY)

Lowest at 10.77%

CASH AND EQV(HY)

Lowest at JPY 140,532 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.07 times

Here's what is working for Daicel Corp.

Pre-Tax Profit

Highest at JPY 24,836 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 24,836 MM has Grown at 70.24%

over average net sales of the previous four periods of JPY 14,588.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 16,901 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 16,901 MM has Grown at 59.97%

over average net sales of the previous four periods of JPY 10,565.1 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 64.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 2.3 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 1.6% (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 Daicel Corp.

Interest

At JPY 1,577 MM has Grown at 66%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 140,532 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 5.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio