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Denka Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Specialty Chemicals
  • ISIN: JP3549600009
JPY
2,662.50
34 (1.29%)

Dec 11

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
Japan Material Co., Ltd.
Nifco, Inc.
Tosoh Corp.
Air Water, Inc.
Kaneka Corp.
UBE Corp.
NOF Corp.
Daicel Corp.
Mitsubishi Gas Chemical Co., Inc.
Denka Co., Ltd.
Resonac Holdings Corp.
Why is Denka Co., Ltd. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
  • Poor long term growth as Net Sales has grown by an annual rate of 1.00% and Operating profit at -14.52% over the last 5 years
  • High Debt Company with a Debt to Equity ratio (avg) at times
2
Poor long term growth as Net Sales has grown by an annual rate of 1.00% and Operating profit at -14.52% over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
  • INTEREST COVERAGE RATIO(Q) Lowest at 1,545.28
  • NET PROFIT(HY) At JPY 8,472.1 MM has Grown at -33.71%
  • ROCE(HY) Lowest at -3.16%
4
Risky -
  • The stock is trading risky as compared to its average historical valuations
  • Over the past year, while the stock has generated a return of 23.72%, its profits have fallen by -89.1%
  • At the current price, the company has a high dividend yield of 0
stock-recommendationReal-Time Research Report
Verdict Report
How much should you sell?
  1. 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 Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Denka Co., Ltd. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Denka Co., Ltd.
22.19%
0.79
29.55%
Japan Nikkei 225
28.54%
1.14
25.81%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
1.00%
EBIT Growth (5y)
-14.52%
EBIT to Interest (avg)
25.70
Debt to EBITDA (avg)
2.82
Net Debt to Equity (avg)
0.61
Sales to Capital Employed (avg)
0.79
Tax Ratio
0.15%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.17%
ROCE (avg)
6.45%
ROE (avg)
5.83%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
106
Industry P/E
Price to Book Value
0.60
EV to EBIT
24.93
EV to EBITDA
8.50
EV to Capital Employed
0.75
EV to Sales
0.90
PEG Ratio
NA
Dividend Yield
0.02%
ROCE (Latest)
3.02%
ROE (Latest)
0.57%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company
NET PROFIT(Q)

At JPY 5,350.1 MM has Grown at 183.51%

CASH AND EQV(HY)

Highest at JPY 79,555 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.56%

PRE-TAX PROFIT(Q)

Highest at JPY 8,225 MM

EPS(Q)

Highest at JPY 58.03

-20What is not working for the Company
INTEREST COVERAGE RATIO(Q)

Lowest at 1,545.28

NET PROFIT(HY)

At JPY 8,472.1 MM has Grown at -33.71%

ROCE(HY)

Lowest at -3.16%

RAW MATERIAL COST(Y)

Grown by 8.43% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 61.37 %

NET SALES(Q)

At JPY 94,067 MM has Fallen at -5.99%

INTEREST(Q)

Highest at JPY 614 MM

Here's what is working for Denka Co., Ltd.
Pre-Tax Profit
At JPY 8,225 MM has Grown at 907.35%
over average net sales of the previous four periods of JPY 816.5 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit
At JPY 5,350.1 MM has Grown at 183.51%
over average net sales of the previous four periods of JPY 1,887.06 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit
Highest at JPY 8,225 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit
Highest at JPY 5,350.1 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS
Highest at JPY 58.03
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv
Highest at JPY 79,555 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio
Highest at 4.56%
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Denka Co., Ltd.
Interest Coverage Ratio
Lowest at 1,545.28 and Fallen
In each period in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales
Lowest at JPY 94,067 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (JPY MM)

Net Sales
At JPY 94,067 MM has Fallen at -5.99%
over average net sales of the previous four periods of JPY 100,062.75 MM
MOJO Watch
Near term sales trend is negative

Net Sales (JPY MM)

Interest
Highest at JPY 614 MM
in the last five periods and Increased by 5.5% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio
Highest at 61.37 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost
Grown by 8.43% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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