ScoreWhy is Eiken Chemical Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 2.15% over the last 5 years
2
With a fall in Net Sales of -3.88%, the company declared Very Negative results in Mar 26
- INTEREST COVERAGE RATIO(Q) Lowest at 5,640
- DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
- RAW MATERIAL COST(Y) Grown by 10.8% (YoY)
3
With ROE of 9.33%, it has a expensive valuation with a 2.30 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 19.33%, its profits have risen by 87.2% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 0
4
Underperformed the market in the last 1 year
- The stock has generated a return of 19.33% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%
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, Low Return
Absolute
Risk Adjusted
Volatility
Eiken Chemical Co., Ltd.
19.33%
0.48
49.52%
Japan Nikkei 225
75.22%
2.67
28.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.15%
EBIT Growth (5y)
-11.55%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.15
Sales to Capital Employed (avg)
0.83
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
25
Industry P/E
Price to Book Value
2.30
EV to EBIT
31.11
EV to EBITDA
17.25
EV to Capital Employed
2.40
EV to Sales
2.37
PEG Ratio
0.23
Dividend Yield
NA
ROCE (Latest)
7.70%
ROE (Latest)
9.33%
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
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
NET PROFIT(9M)
Higher at JPY 3,108 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 3.12 times
-29What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 5,640
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
RAW MATERIAL COST(Y)
Grown by 10.8% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -8.29 %
INTEREST(Q)
Highest at JPY 15 MM
OPERATING PROFIT(Q)
Lowest at JPY 846 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 8.04 %
PRE-TAX PROFIT(Q)
Lowest at JPY 103 MM
NET PROFIT(Q)
Lowest at JPY -14 MM
EPS(Q)
Lowest at JPY -0.42
Here's what is working for Eiken Chemical Co., Ltd.
Inventory Turnover Ratio
Highest at 3.12 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at JPY 705 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 Eiken Chemical Co., Ltd.
Pre-Tax Profit
At JPY 103 MM has Fallen at -91.91%
over average net sales of the previous four periods of JPY 1,273.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -14 MM has Fallen at -101.37%
over average net sales of the previous four periods of JPY 1,019.89 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 15 MM has Grown at 200%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 5,640
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 15 MM
in the last five periods and Increased by 200% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 846 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 8.04 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 103 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -14 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -0.42
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Highest at -8.29 %
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
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 10.8% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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