Daito Pharmaceutical Co., Ltd. (4577) 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

Elan Corp.

KYORIN Pharmaceutical Co., Ltd.

Zeria Pharmaceutical Co., Ltd.

ASKA Pharmaceutical Holdings Co., Ltd.

Daito Pharmaceutical Co., Ltd.

CellSource Co., Ltd.

Torii Pharmaceutical Co., Ltd.

Earth Corp.

Katakura Industries Co., Ltd.

Seikagaku Corp.

SanBio Co., Ltd.

Why is Daito Pharmaceutical Co., Ltd. ?

High Management Efficiency with a high ROE of 7.51%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 1.60% and Operating profit at -13.43% over the last 5 years

The company has declared Negative results for the last 14 consecutive quarters

INTEREST(Q) At JPY 33 MM has Grown at 10%
CASH AND EQV(HY) Lowest at JPY 4,373 MM

With ROE of 3.64%, it has a very attractive valuation with a 0.61 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 32.75%, its profits have fallen by -39.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daito Pharmaceutical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Daito Pharmaceutical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daito Pharmaceutical Co., Ltd.

32.75%

0.45

57.03%

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)

1.60%

EBIT Growth (5y)

-13.43%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.37

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

0.79

Tax Ratio

40.30%

Dividend Payout Ratio

55.80%

Pledged Shares

Institutional Holding

ROCE (avg)

9.93%

ROE (avg)

7.51%

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

0.61

EV to EBIT

14.84

EV to EBITDA

5.70

EV to Capital Employed

0.66

EV to Sales

0.81

PEG Ratio

Dividend Yield

ROCE (Latest)

4.46%

ROE (Latest)

3.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

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

DIVIDEND PER SHARE(HY)

Highest at JPY 2.75

RAW MATERIAL COST(Y)

Fallen by -1.84% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.16 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.75 times

PRE-TAX PROFIT(Q)

At JPY 778 MM has Grown at 60.41%

NET PROFIT(Q)

At JPY 534.61 MM has Grown at 84.34%

-11What is not working for the Company

INTEREST(Q)

At JPY 33 MM has Grown at 10%

CASH AND EQV(HY)

Lowest at JPY 4,373 MM

Here's what is working for Daito Pharmaceutical Co., Ltd.

Dividend per share

Highest at JPY 2.75 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Pre-Tax Profit

At JPY 778 MM has Grown at 60.41%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 534.61 MM has Grown at 84.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 2.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.84% (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 Daito Pharmaceutical Co., Ltd.

Interest

At JPY 33 MM has Grown at 10%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 4,373 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents