DKK Co., Ltd. (6706) 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

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DKK Co., Ltd.

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Why is DKK Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.20%

The company has been able to generate a Return on Equity (avg) of 2.20% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 2.20%

Poor long term growth as Net Sales has grown by an annual rate of -3.57% and Operating profit at -4.35% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 2.20% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.57% and Operating profit at -4.35% over the last 5 years

Negative results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at -16.14 %
PRE-TAX PROFIT(Q) At JPY 1,133 MM has Fallen at -56.32%
RAW MATERIAL COST(Y) Grown by 30.86% (YoY)

Real-Time Research Report

Verdict Report

How 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 Construction)

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

Is DKK Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

DKK Co., Ltd.

51.98%

1.45

35.22%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.57%

EBIT Growth (5y)

-4.35%

EBIT to Interest (avg)

-12.10

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.77

Tax Ratio

37.85%

Dividend Payout Ratio

46.38%

Pledged Shares

Institutional Holding

ROCE (avg)

1.56%

ROE (avg)

2.20%

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

0.89

EV to EBIT

14.56

EV to EBITDA

10.19

EV to Capital Employed

0.87

EV to Sales

0.75

PEG Ratio

0.17

Dividend Yield

ROCE (Latest)

5.98%

ROE (Latest)

7.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

3What is working for the Company

ROCE(HY)

Highest at 5.2%

NET SALES(Q)

Highest at JPY 10,368 MM

-31What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -16.14 %

PRE-TAX PROFIT(Q)

At JPY 1,133 MM has Fallen at -56.32%

RAW MATERIAL COST(Y)

Grown by 30.86% (YoY

CASH AND EQV(HY)

Lowest at JPY 22,241 MM

INTEREST(Q)

Highest at JPY 26 MM

NET PROFIT(Q)

Fallen at -37.43%

Here's what is working for DKK Co., Ltd.

Net Sales

Highest at JPY 10,368 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Depreciation

Highest at JPY 234 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 DKK Co., Ltd.

Interest

At JPY 26 MM has Grown at 18.18%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 1,133 MM has Fallen at -56.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 644.92 MM has Fallen at -65.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -16.14 % and Grown

In each half year 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

Interest

Highest at JPY 26 MM

in the last five periods and Increased by 18.18% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Fallen at -37.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 22,241 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 30.86% (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