ScoreWhy is Eiken Chemical Co., Ltd. ?
1
High Management Efficiency with a high ROE of 9.70%
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of 2.07% over the last 5 years
4
Flat results in Jun 25
- CASH AND EQV(HY) Lowest at JPY 14,542 MM
- DEBT-EQUITY RATIO (HY) Highest at -4 %
5
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 14.98%, its profits have fallen by -6.1%
- At the current price, the company has a high dividend yield of 0
6
Underperformed the market in the last 1 year
- The stock has generated a return of 14.98% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.59%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Eiken Chemical Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Eiken Chemical Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Eiken Chemical Co., Ltd.
-100.0%
0.79
26.48%
Japan Nikkei 225
38.59%
1.45
26.59%
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
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
NET PROFIT(HY)
At JPY 957.58 MM has Grown at 74.42%
INVENTORY TURNOVER RATIO(HY)
Highest at 2.85%
-2What is not working for the Company
CASH AND EQV(HY)
Lowest at JPY 14,542 MM
DEBT-EQUITY RATIO
(HY)
Highest at -4 %
Here's what is working for Eiken Chemical Co., Ltd.
Net Profit
At JPY 957.58 MM has Grown at 74.42%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 2.85% 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
Here's what is not working for Eiken Chemical Co., Ltd.
Cash and Eqv
Lowest at JPY 14,542 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at -4 %
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
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