Hokko Chemical Industry Co., Ltd. (4992) 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

OAT Agrio Co., Ltd.

Kumiai Chemical Industry Co., Ltd.

Nihon Nohyaku Co., Ltd.

Hokko Chemical Industry Co., Ltd.

Agro-Kanesho Co., Ltd.

Fumakilla Ltd.

Katakura & Co-Op Agri Corp.

Why is Hokko Chemical Industry Co., Ltd. ?

Weak Long Term Fundamental Strength with a 5.67% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 5.67% over the last 5 years

Flat results in May 26

INTEREST COVERAGE RATIO(Q) Lowest at 18,023.08
DEBTORS TURNOVER RATIO(HY) Lowest at 1.7 times
INTEREST(Q) Highest at JPY 13 MM

With ROE of 8.53%, it has a very attractive valuation with a 1.00 Price to Book Value

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 28.64%, its profits have risen by 11.1% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 28.64% 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 hold?

Overall Portfolio exposure to Hokko Chemical Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Chemicals & Petrochemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hokko Chemical Industry Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hokko Chemical Industry Co., Ltd.

28.61%

0.77

34.75%

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)

5.67%

EBIT Growth (5y)

21.18%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.51

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.88

Tax Ratio

28.76%

Dividend Payout Ratio

27.08%

Pledged Shares

Institutional Holding

ROCE (avg)

9.28%

ROE (avg)

8.76%

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

1.00

EV to EBIT

9.42

EV to EBITDA

7.02

EV to Capital Employed

1.00

EV to Sales

1.00

PEG Ratio

0.55

Dividend Yield

0.08%

ROCE (Latest)

10.59%

ROE (Latest)

8.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

11What is working for the Company

ROCE(HY)

Highest at 9.19%

DIVIDEND PER SHARE(HY)

Highest at JPY 1.7

DIVIDEND PAYOUT RATIO(Y)

Highest at 42.29%

RAW MATERIAL COST(Y)

Fallen by 1.16% (YoY

CASH AND EQV(HY)

Highest at JPY 12,184 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.61 times

NET SALES(Q)

Highest at JPY 16,606 MM

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 18,023.08

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.7 times

INTEREST(Q)

Highest at JPY 13 MM

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

Net Sales

At JPY 16,606 MM has Grown at 32.81%

over average net sales of the previous four periods of JPY 12,503.75 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 1.7 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 16,606 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 12,184 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 42.29%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.16% (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

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

Interest

At JPY 13 MM has Grown at 333.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 18,023.08

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 13 MM

in the last five periods and Increased by 333.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 1.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio