Why is Daido Kogyo Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.48%
- The company has been able to generate a Return on Capital Employed (avg) of 3.48% signifying low profitability per unit of total capital (equity and debt)
2
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 3.47% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 5.51% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Operating profit has grown by an annual rate 3.47% of over the last 5 years
4
Negative results in Jun 25
- INTEREST(9M) At JPY 296 MM has Grown at 6.09%
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.21%
- CASH AND EQV(HY) Lowest at JPY 16,480 MM
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Daido Kogyo Co., Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Daido Kogyo Co., Ltd.
90.15%
1.86
36.74%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
3.90%
EBIT Growth (5y)
3.47%
EBIT to Interest (avg)
6.51
Debt to EBITDA (avg)
3.39
Net Debt to Equity (avg)
0.48
Sales to Capital Employed (avg)
1.05
Tax Ratio
30.55%
Dividend Payout Ratio
21.43%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.48%
ROE (avg)
5.51%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.40
EV to EBIT
19.54
EV to EBITDA
5.92
EV to Capital Employed
0.59
EV to Sales
0.47
PEG Ratio
3.09
Dividend Yield
0.04%
ROCE (Latest)
3.04%
ROE (Latest)
4.77%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
4What is working for the Company
ROCE(HY)
Highest at 2.9%
RAW MATERIAL COST(Y)
Fallen by -10.92% (YoY
NET SALES(Q)
Highest at JPY 14,887 MM
-6What is not working for the Company
INTEREST(9M)
At JPY 296 MM has Grown at 6.09%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.21%
CASH AND EQV(HY)
Lowest at JPY 16,480 MM
EPS(Q)
Lowest at JPY 11.05
Here's what is working for Daido Kogyo Co., Ltd.
Net Sales
Highest at JPY 14,887 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Raw Material Cost
Fallen by -10.92% (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 Daido Kogyo Co., Ltd.
Inventory Turnover Ratio
Lowest at 3.21% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Interest
At JPY 296 MM has Grown at 6.09%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
EPS
Lowest at JPY 11.05
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Cash and Eqv
Lowest at JPY 16,480 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






