GOURMET KINEYA CO., LTD. (9850) 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

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Kanemi Co., Ltd.

AMIYAKI TEI Co., Ltd.

DD GROUP Co., Ltd.

GOURMET KINEYA CO., LTD.

Chimney Co., Ltd.

Kaihan Co., Ltd.

Why is GOURMET KINEYA CO., LTD. ?

Poor Management Efficiency with a low ROCE of 1.57%

The company has been able to generate a Return on Capital Employed (avg) of 1.57% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 1.54% and Operating profit at 41.97% over the last 5 years
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 5.32% signifying low profitability per unit of shareholders funds

Negative results in Jun 25

NET PROFIT(HY) At JPY 45.44 MM has Grown at -85.17%
INTEREST(HY) At JPY 135.44 MM has Grown at 57.13%
PRE-TAX PROFIT(Q) At JPY -104.55 MM has Fallen at -178.07%

With ROE of 11.69%, it has a expensive valuation with a 2.43 Price to Book Value

Over the past year, while the stock has generated a return of -9.26%, its profits have fallen by -17.1%
At the current price, the company has a high dividend yield of 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.26% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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 Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is GOURMET KINEYA CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

GOURMET KINEYA CO., LTD.

-9.26%

-0.93

15.26%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.54%

EBIT Growth (5y)

41.97%

EBIT to Interest (avg)

-4.52

Debt to EBITDA (avg)

7.73

Net Debt to Equity (avg)

0.91

Sales to Capital Employed (avg)

1.34

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

24.66%

Pledged Shares

Institutional Holding

ROCE (avg)

1.57%

ROE (avg)

5.32%

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

2.43

EV to EBIT

32.60

EV to EBITDA

13.97

EV to Capital Employed

1.75

EV to Sales

0.73

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

5.36%

ROE (Latest)

11.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-25What is not working for the Company

NET PROFIT(HY)

At JPY 45.44 MM has Grown at -85.17%

INTEREST(HY)

At JPY 135.44 MM has Grown at 57.13%

PRE-TAX PROFIT(Q)

At JPY -104.55 MM has Fallen at -178.07%

RAW MATERIAL COST(Y)

Grown by 7.06% (YoY

CASH AND EQV(HY)

Lowest at JPY 10,869.28 MM

Here's what is not working for GOURMET KINEYA CO., LTD.

Interest

At JPY 135.44 MM has Grown at 57.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -104.55 MM has Fallen at -178.07%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -159.8 MM has Fallen at -431.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Profit

Lowest at JPY -159.8 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 10,869.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 7.06% (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