Harima-Kyowa Co., Ltd. (7444) 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

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Takihyo Co., Ltd.

Yagi & Co., Ltd.

Harima-Kyowa Co., Ltd.

Green Cross Co., Ltd.

Misumi Co., Ltd.

Why is Harima-Kyowa Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.66%

The company has been able to generate a Return on Equity (avg) of 5.66% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 2.63% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.66% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 2.63% of over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 3,871.72
DEBT-EQUITY RATIO (HY) Highest at -4.13 %
INVENTORY TURNOVER RATIO(HY) Lowest at 19.07 times

Underperformed the market in the last 1 year

The stock has generated a return of 3.04% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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 Trading & Distributors)

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

Is Harima-Kyowa Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Harima-Kyowa Co., Ltd.

-100.0%

-0.28

13.43%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.55%

EBIT Growth (5y)

2.63%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

2.29

Tax Ratio

27.32%

Dividend Payout Ratio

21.34%

Pledged Shares

Institutional Holding

ROCE (avg)

8.40%

ROE (avg)

5.66%

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

0.40

EV to EBIT

5.56

EV to EBITDA

3.97

EV to Capital Employed

0.38

EV to Sales

0.16

PEG Ratio

Dividend Yield

ROCE (Latest)

6.74%

ROE (Latest)

4.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

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

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 5.47

RAW MATERIAL COST(Y)

Fallen by -17.34% (YoY

CASH AND EQV(HY)

Highest at JPY 7,870.25 MM

NET PROFIT(Q)

At JPY 311.31 MM has Grown at 79.24%

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,871.72

DEBT-EQUITY RATIO (HY)

Highest at -4.13 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 19.07 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.47 times

INTEREST(Q)

Highest at JPY 14.98 MM

Here's what is working for Harima-Kyowa Co., Ltd.

Dividend per share

Highest at JPY 5.47 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

At JPY 311.31 MM has Grown at 79.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 7,870.25 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -17.34% (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

Depreciation

Highest at JPY 295.58 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 Harima-Kyowa Co., Ltd.

Interest

At JPY 14.98 MM has Grown at 117.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,871.72

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 14.98 MM

in the last five periods and Increased by 117.65% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -4.13 %

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

Inventory Turnover Ratio

Lowest at 19.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio