Daiichi Kigenso Kagaku Kogyo Co., Ltd. (4082) 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

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Why is Daiichi Kigenso Kagaku Kogyo Co., Ltd. ?

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

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 -6.00% of over the last 5 years

With a growth in Net Profit of 3695.12%, the company declared Outstanding results in Dec 25

The company has declared positive results in Jan 70 after 10 consecutive negative quarters
PRE-TAX PROFIT(Q) At JPY 2,547 MM has Grown at 574.26%
RAW MATERIAL COST(Y) Fallen by -14.75% (YoY)
NET SALES(Q) Highest at JPY 9,166 MM

With ROCE of 4.54%, it has a very attractive valuation with a 0.56 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 216.69%, its profits have fallen by -128.9%

Market Beating performance in long term as well as near term

Along with generating 216.69% returns in the last 1 year, the stock has outperformed 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 Daiichi Kigenso Kagaku Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Daiichi Kigenso Kagaku Kogyo Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Daiichi Kigenso Kagaku Kogyo Co., Ltd.

230.59%

1.90

94.26%

Japan Nikkei 225

38.94%

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)

4.87%

EBIT Growth (5y)

-6.00%

EBIT to Interest (avg)

21.61

Debt to EBITDA (avg)

2.33

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

0.58

Tax Ratio

52.66%

Dividend Payout Ratio

79.67%

Pledged Shares

Institutional Holding

ROCE (avg)

6.38%

ROE (avg)

6.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.41

EV to EBIT

12.25

EV to EBITDA

4.78

EV to Capital Employed

0.56

EV to Sales

0.83

PEG Ratio

Dividend Yield

ROCE (Latest)

4.54%

ROE (Latest)

-1.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

21What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 2,547 MM has Grown at 574.26%

RAW MATERIAL COST(Y)

Fallen by -14.75% (YoY

NET SALES(Q)

Highest at JPY 9,166 MM

OPERATING PROFIT(Q)

Highest at JPY 2,473 MM

OPERATING PROFIT MARGIN(Q)

Highest at 26.98 %

NET PROFIT(Q)

Highest at JPY 1,859.75 MM

-3What is not working for the Company

INTEREST(Q)

At JPY 125 MM has Grown at 89.39%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.55 times

Here's what is working for Daiichi Kigenso Kagaku Kogyo Co., Ltd.

Pre-Tax Profit

At JPY 2,547 MM has Grown at 574.26%

over average net sales of the previous four periods of JPY 377.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,859.75 MM has Grown at 921.38%

over average net sales of the previous four periods of JPY 182.08 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 9,166 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,473 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 26.98 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at JPY 1,859.75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -14.75% (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 Daiichi Kigenso Kagaku Kogyo Co., Ltd.

Interest

At JPY 125 MM has Grown at 89.39%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 1.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio