Gun Ei Chemical Industry Co., Ltd. (4229) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tomoe Engineering Co., Ltd.

Riken Technos Corp.

Koatsu Gas Kogyo Co., Ltd.

Ise Chemicals Corp.

Stella Chemifa Corp.

Okura Industrial Co., Ltd.

Dainichiseika Color & Chemicals Mfg. Co., Ltd.

Sakai Chemical Industry Co., Ltd.

Gun Ei Chemical Industry Co., Ltd.

Tayca Corp.

Tanaka Chemical Corp.

Why is Gun Ei Chemical Industry Co., Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 9.11% of over the last 5 years

INTEREST(Q) At JPY 4 MM has Grown at 33.33%
INTEREST COVERAGE RATIO(Q) Lowest at 22,300
RAW MATERIAL COST(Y) Grown by 9.28% (YoY)

Underperformed the market in the last 1 year

The stock has generated a return of 62.60% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

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 Specialty Chemicals)

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

Is Gun Ei Chemical Industry Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gun Ei Chemical Industry Co., Ltd.

62.6%

0.96

44.64%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.70%

EBIT Growth (5y)

9.11%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

0.62

Tax Ratio

24.20%

Dividend Payout Ratio

34.54%

Pledged Shares

Institutional Holding

ROCE (avg)

6.47%

ROE (avg)

4.09%

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

0.90

EV to EBIT

13.04

EV to EBITDA

8.09

EV to Capital Employed

0.87

EV to Sales

1.18

PEG Ratio

0.51

Dividend Yield

ROCE (Latest)

6.70%

ROE (Latest)

4.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

1What is working for the Company

CASH AND EQV(HY)

Highest at JPY 22,417 MM

-14What is not working for the Company

INTEREST(Q)

At JPY 4 MM has Grown at 33.33%

INTEREST COVERAGE RATIO(Q)

Lowest at 22,300

RAW MATERIAL COST(Y)

Grown by 9.28% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 892 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.46 %

PRE-TAX PROFIT(Q)

Lowest at JPY 461 MM

NET PROFIT(Q)

Lowest at JPY 271.52 MM

EPS(Q)

Lowest at JPY 42.04

Here's what is working for Gun Ei Chemical Industry Co., Ltd.

Cash and Eqv

Highest at JPY 22,417 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 552 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Gun Ei Chemical Industry Co., Ltd.

Interest

At JPY 4 MM has Grown at 33.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 22,300

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 461 MM has Fallen at -42.34%

over average net sales of the previous four periods of JPY 799.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 271.52 MM has Fallen at -51.21%

over average net sales of the previous four periods of JPY 556.46 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 892 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 11.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 461 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 271.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 42.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 9.28% (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 0.27 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income