Fuso Pharmaceutical Industries Ltd. (4538) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fuji Pharma Co., Ltd.

Koa Shoji Holdings Co., Ltd.

Elan Corp.

ASKA Pharmaceutical Holdings Co., Ltd.

Katakura Industries Co., Ltd.

Daito Pharmaceutical Co., Ltd.

CellSource Co., Ltd.

Noile-Immune Biotech, Inc.

Seikagaku Corp.

Fuso Pharmaceutical Industries Ltd.

SanBio Co., Ltd.

Why is Fuso Pharmaceutical Industries Ltd. ?

Poor Management Efficiency with a low ROCE of 5.73%

The company has been able to generate a Return on Capital Employed (avg) of 5.73% signifying low profitability per unit of total capital (equity and debt)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -11.56%, its profits have risen by 93.3% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -11.56% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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 Fuso Pharmaceutical Industries Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fuso Pharmaceutical Industries Ltd.

-11.28%

-0.15

23.67%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.25%

EBIT Growth (5y)

32.52%

EBIT to Interest (avg)

14.69

Debt to EBITDA (avg)

1.50

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

1.08

Tax Ratio

33.84%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.92%

ROE (avg)

4.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.52

EV to EBIT

8.55

EV to EBITDA

5.45

EV to Capital Employed

0.65

EV to Sales

0.58

PEG Ratio

0.08

Dividend Yield

0.02%

ROCE (Latest)

7.63%

ROE (Latest)

6.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

NET PROFIT(HY)

Higher at JPY 3,459.9 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.38%

-19What is not working for the Company

ROCE(HY)

Lowest at -9.82%

DEBT-EQUITY RATIO (HY)

Highest at 75.57 %

RAW MATERIAL COST(Y)

Grown by 8.1% (YoY

CASH AND EQV(HY)

Lowest at JPY 9,421 MM

INTEREST(Q)

Highest at JPY 70 MM

PRE-TAX PROFIT(Q)

Fallen at -30.57%

NET PROFIT(Q)

Lowest at JPY 406.9 MM

Here's what is working for Fuso Pharmaceutical Industries Ltd.

Debtors Turnover Ratio

Highest at 2.38%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 641 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 641 MM has Grown at 766.22%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Fuso Pharmaceutical Industries Ltd.

Interest

At JPY 70 MM has Grown at 40%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 75.57 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at JPY 70 MM

in the last five periods and Increased by 40% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -30.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 406.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 9,421 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 8.1% (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