Why is Fuso Chemical Co., Ltd. ?
1
Strong Long Term Fundamental Strength with a 10.97% CAGR growth in Net Sales
- Company has very low debt and has enough cash to service the debt requirements
- The company has been able to generate a Return on Capital Employed (avg) of 22.72% signifying high profitability per unit of total capital (equity and debt)
2
The company has declared Positive results for the last 3 consecutive quarters
- INTEREST COVERAGE RATIO(Q) Highest at 21,035.99
- OPERATING CASH FLOW(Y) Highest at JPY 20,158.87 MM
- OPERATING PROFIT MARGIN(Q) Highest at 36.97 %
3
With ROE of 11.15%, it has a very attractive valuation with a 1.28 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 93.82%, its profits have risen by 41.1% ; the PEG ratio of the company is 0.3
4
Market Beating performance in long term as well as near term
- Along with generating 93.82% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you buy?
- Overall Portfolio exposure to Fuso Chemical Co., Ltd. should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Fuso Chemical Co., Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Fuso Chemical Co., Ltd.
89.81%
2.37
29.80%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
10.97%
EBIT Growth (5y)
12.94%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.11
Sales to Capital Employed (avg)
0.57
Tax Ratio
28.55%
Dividend Payout Ratio
22.14%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
22.72%
ROE (avg)
12.14%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.28
EV to EBIT
7.52
EV to EBITDA
4.97
EV to Capital Employed
1.32
EV to Sales
1.76
PEG Ratio
0.28
Dividend Yield
NA
ROCE (Latest)
17.50%
ROE (Latest)
11.15%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish
Technical Movement
11What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 21,035.99
OPERATING CASH FLOW(Y)
Highest at JPY 20,158.87 MM
OPERATING PROFIT MARGIN(Q)
Highest at 36.97 %
RAW MATERIAL COST(Y)
Fallen by -8.19% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.59%
NET SALES(Q)
Highest at JPY 18,658.09 MM
OPERATING PROFIT(Q)
Highest at JPY 6,897.49 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Fuso Chemical Co., Ltd.
Interest Coverage Ratio
Highest at 21,035.99 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit Margin
Highest at 36.97 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Operating Cash Flow
Highest at JPY 20,158.87 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Sales
Highest at JPY 18,658.09 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 6,897.49 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Inventory Turnover Ratio
Highest at 2.59%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -8.19% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales






