Dainichiseika Color & Chemicals Mfg. Co., Ltd. (4116) 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

ISHIHARA SANGYO KAISHA LTD.

Chori Co., Ltd.

Mec Co., Ltd.

Riken Technos Corp.

JSP Corp.

Dainichiseika Color & Chemicals Mfg. Co., Ltd.

Ise Chemicals Corp.

Toyo Gosei Co., Ltd.

TENMA Corp.

Kanto Denka Kogyo Co., Ltd.

C.I. Takiron Corp.

Why is Dainichiseika Color & Chemicals Mfg. Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.66%

The company has been able to generate a Return on Equity (avg) of 5.66% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 18.89% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.66% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.05% and Operating profit at 18.89% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 165 MM has Grown at 33.06%
NET PROFIT(9M) At JPY 5,632.13 MM has Grown at -35.75%
INTEREST COVERAGE RATIO(Q) Lowest at 3,259.52

With ROE of 5.28%, it has a very attractive valuation with a 0.59 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 49.01%, its profits have fallen by -45.5%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dainichiseika Color & Chemicals Mfg. Co., Ltd. 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 Dainichiseika Color & Chemicals Mfg. Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dainichiseika Color & Chemicals Mfg. Co., Ltd.

49.01%

-0.73

82.23%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.05%

EBIT Growth (5y)

18.89%

EBIT to Interest (avg)

20.14

Debt to EBITDA (avg)

0.27

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.83

Tax Ratio

28.10%

Dividend Payout Ratio

46.49%

Pledged Shares

Institutional Holding

ROCE (avg)

4.78%

ROE (avg)

5.66%

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

0.59

EV to EBIT

11.03

EV to EBITDA

6.44

EV to Capital Employed

0.59

EV to Sales

0.64

PEG Ratio

Dividend Yield

ROCE (Latest)

5.39%

ROE (Latest)

5.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

NET PROFIT(HY)

At JPY 4,354.67 MM has Grown at 106.95%

RAW MATERIAL COST(Y)

Fallen by -6.12% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 2.4

-13What is not working for the Company

INTEREST(HY)

At JPY 165 MM has Grown at 33.06%

NET PROFIT(9M)

At JPY 5,632.13 MM has Grown at -35.75%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,259.52

CASH AND EQV(HY)

Lowest at JPY 43,619 MM

Here's what is working for Dainichiseika Color & Chemicals Mfg. Co., Ltd.

Net Profit

At JPY 4,354.67 MM has Grown at 106.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Dividend per share

Highest at JPY 2.4

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -6.12% (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

Depreciation

Highest at JPY 1,311 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 Dainichiseika Color & Chemicals Mfg. Co., Ltd.

Interest

At JPY 165 MM has Grown at 33.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,259.52

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Cash and Eqv

Lowest at JPY 43,619 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents