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.

Riken Technos Corp.

JSP Corp.

Mec Co., Ltd.

Ise Chemicals Corp.

C.I. Takiron Corp.

Dainichiseika Color & Chemicals Mfg. Co., Ltd.

TENMA Corp.

Kanto Denka Kogyo Co., Ltd.

Toyo Gosei Co., Ltd.

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

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -4.26% and Operating profit at 7.63% over the last 5 years

The company has declared negative results in Mar'2025 after 5 consecutive positive quarters

NET PROFIT(HY) At JPY 4,212.46 MM has Grown at -51.82%
CASH AND EQV(HY) Lowest at JPY 41,563 MM
INTEREST(Q) Highest at JPY 81 MM

With ROE of 8.06%, it has a very attractive valuation with a 0.45 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 37.95%, its profits have risen by 69.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 37.95% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

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?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Dainichiseika Color & Chemicals Mfg. Co., Ltd.

37.95%

1.36

26.06%

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)

-4.26%

EBIT Growth (5y)

7.63%

EBIT to Interest (avg)

17.57

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.84

Tax Ratio

27.01%

Dividend Payout Ratio

26.02%

Pledged Shares

Institutional Holding

ROCE (avg)

4.56%

ROE (avg)

5.62%

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

0.45

EV to EBIT

7.84

EV to EBITDA

4.61

EV to Capital Employed

0.44

EV to Sales

0.44

PEG Ratio

0.08

Dividend Yield

0.03%

ROCE (Latest)

5.62%

ROE (Latest)

8.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.9% (YoY

PRE-TAX PROFIT(Q)

Highest at JPY 3,963 MM

NET PROFIT(Q)

Highest at JPY 2,935 MM

EPS(Q)

Highest at JPY 171.95

-16What is not working for the Company

NET PROFIT(HY)

At JPY 4,212.46 MM has Grown at -51.82%

CASH AND EQV(HY)

Lowest at JPY 41,563 MM

INTEREST(Q)

Highest at JPY 81 MM

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

Pre-Tax Profit

Highest at JPY 3,963 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 3,963 MM has Grown at 90.3%

over average net sales of the previous four periods of JPY 2,082.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 2,935 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 2,935 MM has Grown at 100.2%

over average net sales of the previous four periods of JPY 1,466.05 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 171.95

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by 1.9% (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 Dainichiseika Color & Chemicals Mfg. Co., Ltd.

Interest

At JPY 81 MM has Grown at 12.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 81 MM

in the last five periods and Increased by 12.5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 41,563 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents