ScoreWhy is Eiken Industries Co., Ltd. ?
1
Poor long term growth as Operating profit has grown by an annual rate -5.16% of over the last 5 years
2
With a fall in PBT of -46.27%, the company declared Very Negative results in Oct 25
- INTEREST(HY) At JPY 2.04 MM has Grown at 64.1%
- INTEREST COVERAGE RATIO(Q) Lowest at 6,881.72
- RAW MATERIAL COST(Y) Grown by 19.23% (YoY)
3
With ROE of 4.54%, it has a very attractive valuation with a 0.76 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 8.45%, its profits have risen by 80.8% ; the PEG ratio of the company is 0.2
4
Underperformed the market in the last 1 year
- The stock has generated a return of 8.45% 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 Automobiles)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Eiken Industries Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Eiken Industries Co., Ltd.
8.45%
0.15
28.75%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.83%
EBIT Growth (5y)
-5.16%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
1.17
Tax Ratio
27.61%
Dividend Payout Ratio
34.45%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.25%
ROE (avg)
4.61%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
0.76
EV to EBIT
9.95
EV to EBITDA
5.72
EV to Capital Employed
0.71
EV to Sales
0.45
PEG Ratio
0.21
Dividend Yield
NA
ROCE (Latest)
7.11%
ROE (Latest)
4.54%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 1,042.58%
CASH AND EQV(HY)
Highest at JPY 3,919.07 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -23.27 %
-22What is not working for the Company
INTEREST(HY)
At JPY 2.04 MM has Grown at 64.1%
INTEREST COVERAGE RATIO(Q)
Lowest at 6,881.72
RAW MATERIAL COST(Y)
Grown by 19.23% (YoY
OPERATING PROFIT(Q)
Lowest at JPY 70.4 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 3.66 %
PRE-TAX PROFIT(Q)
Lowest at JPY 10.94 MM
NET PROFIT(Q)
Lowest at JPY 10.64 MM
EPS(Q)
Lowest at JPY 10.55
Here's what is working for Eiken Industries Co., Ltd.
Cash and Eqv
Highest at JPY 3,919.07 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -23.27 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 1,042.58%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Eiken Industries Co., Ltd.
Interest
At JPY 2.04 MM has Grown at 64.1%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 10.94 MM has Fallen at -91.23%
over average net sales of the previous four periods of JPY 124.7 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 10.64 MM has Fallen at -88.27%
over average net sales of the previous four periods of JPY 90.65 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest Coverage Ratio
Lowest at 6,881.72
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at JPY 70.4 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 3.66 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 10.94 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 10.64 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 10.55
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Raw Material Cost
Grown by 19.23% (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
Non Operating Income
Highest at JPY 0.51 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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