ScoreWhy is Eiken Chemical Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 2.07% over the last 5 years
2
With ROE of 5.67%, it has a very attractive valuation with a 1.78 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 21.16%, its profits have fallen by -6.1%
- At the current price, the company has a high dividend yield of 0
3
Underperformed the market in the last 1 year
- The stock has generated a return of 21.16% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
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 Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Eiken Chemical Co., Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Eiken Chemical Co., Ltd.
22.54%
0.77
48.33%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.07%
EBIT Growth (5y)
-8.29%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.15
Sales to Capital Employed (avg)
0.82
Tax Ratio
25.51%
Dividend Payout Ratio
81.76%
Pledged Shares
0
Institutional Holding
0.35%
ROCE (avg)
17.07%
ROE (avg)
9.70%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
1.78
EV to EBIT
23.70
EV to EBITDA
12.80
EV to Capital Employed
1.91
EV to Sales
1.75
PEG Ratio
NA
Dividend Yield
0.03%
ROCE (Latest)
8.07%
ROE (Latest)
5.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
NET PROFIT(HY)
Higher at JPY 3,122 MM
ROCE(HY)
Highest at 8.6%
INVENTORY TURNOVER RATIO(HY)
Highest at 2.86 times
NET SALES(Q)
Highest at JPY 10,947 MM
-9What is not working for the Company
INTEREST(HY)
At JPY 10 MM has Grown at 25%
RAW MATERIAL COST(Y)
Grown by 7.44% (YoY
NET PROFIT(Q)
At JPY 743 MM has Fallen at -28.27%
Here's what is working for Eiken Chemical Co., Ltd.
Inventory Turnover Ratio
Highest at 2.86 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
Highest at JPY 10,947 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Here's what is not working for Eiken Chemical Co., Ltd.
Interest
At JPY 10 MM has Grown at 25%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 743 MM has Fallen at -28.27%
over average net sales of the previous four periods of JPY 1,035.89 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Raw Material Cost
Grown by 7.44% (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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