ScoreWhy is Godo Steel, Ltd. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 7.01% signifying low profitability per unit of shareholders funds
2
High Debt company with Weak Long Term Fundamental Strength
3
The company has declared Negative results for the last 6 consecutive quarters
- INTEREST(HY) At JPY 351 MM has Grown at 10.38%
- ROCE(HY) Lowest at 7.31%
- RAW MATERIAL COST(Y) Grown by 8.75% (YoY)
4
With ROCE of 8.08%, it has a very attractive valuation with a 0.59 Enterprise value to Capital Employed
- 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 -11.40%, its profits have fallen by -25.4%
- At the current price, the company has a high dividend yield of 0
5
Below par performance in long term as well as near term
- Along with generating -11.40% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Godo Steel, Ltd. should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Godo Steel, Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Godo Steel, Ltd.
-11.4%
-1.16
25.12%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.08%
EBIT Growth (5y)
8.54%
EBIT to Interest (avg)
19.35
Debt to EBITDA (avg)
5.97
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
1.09
Tax Ratio
26.96%
Dividend Payout Ratio
31.00%
Pledged Shares
0
Institutional Holding
0.04%
ROCE (avg)
6.02%
ROE (avg)
7.01%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
0.48
EV to EBIT
7.27
EV to EBITDA
5.31
EV to Capital Employed
0.59
EV to Sales
0.49
PEG Ratio
NA
Dividend Yield
0.01%
ROCE (Latest)
8.08%
ROE (Latest)
8.45%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 25.73 %
-12What is not working for the Company
INTEREST(HY)
At JPY 351 MM has Grown at 10.38%
ROCE(HY)
Lowest at 7.31%
RAW MATERIAL COST(Y)
Grown by 8.75% (YoY
OPERATING PROFIT MARGIN(Q)
Lowest at 7.73 %
PRE-TAX PROFIT(Q)
At JPY 2,732 MM has Fallen at -27.44%
NET PROFIT(Q)
At JPY 1,880 MM has Fallen at -30.26%
Here's what is working for Godo Steel, Ltd.
Debt-Equity Ratio
Lowest at 25.73 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at JPY 1,348 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 Godo Steel, Ltd.
Interest
At JPY 351 MM has Grown at 10.38%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 7.73 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
At JPY 2,732 MM has Fallen at -27.44%
over average net sales of the previous four periods of JPY 3,765 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 1,880 MM has Fallen at -30.26%
over average net sales of the previous four periods of JPY 2,695.54 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Raw Material Cost
Grown by 8.75% (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
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
