ScoreWhy is Denka Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 1.92% and Operating profit at -10.19% over the last 5 years
- The company is Net-Debt Free
2
Poor long term growth as Net Sales has grown by an annual rate of 1.92% and Operating profit at -10.19% over the last 5 years
3
With ROCE of 4.26%, it has a expensive valuation with a 1.16 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 68.99%, its profits have fallen by -89%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you sell?
- 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?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Denka Co., Ltd.
61.17%
1.41
46.34%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.92%
EBIT Growth (5y)
-10.19%
EBIT to Interest (avg)
19.73
Debt to EBITDA (avg)
3.10
Net Debt to Equity (avg)
0.61
Sales to Capital Employed (avg)
0.77
Tax Ratio
47.31%
Dividend Payout Ratio
54.92%
Pledged Shares
0
Institutional Holding
0.17%
ROCE (avg)
5.68%
ROE (avg)
5.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
233
Industry P/E
Price to Book Value
1.26
EV to EBIT
27.11
EV to EBITDA
11.32
EV to Capital Employed
1.16
EV to Sales
1.45
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.26%
ROE (Latest)
0.54%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
NET PROFIT(HY)
Higher at JPY 12,960.2 MM
ROCE(HY)
Highest at 4.49%
RAW MATERIAL COST(Y)
Fallen by -41.36% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 4.59 times
OPERATING PROFIT(Q)
Highest at JPY 18,777 MM
OPERATING PROFIT MARGIN(Q)
Highest at 19.36 %
-5What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 64.84 %
INTEREST(Q)
At JPY 614 MM has Grown at 14.98%
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.17 times
Here's what is working for Denka Co., Ltd.
Net Profit
Higher at JPY 12,960.2 MM
than preceding 12 month period ended Jun 2026MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Operating Profit
Highest at JPY 18,777 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 19.36 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debtors Turnover Ratio
Highest at 4.59 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -41.36% (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 7,783 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Denka Co., Ltd.
Interest
At JPY 614 MM has Grown at 14.98%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 64.84 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 2.17 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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