Why is Hokko Chemical Industry Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
With ROE of 8.72%, it has a very attractive valuation with a 0.81 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 18.01%, its profits have risen by 28.4% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 0.1
How much should you buy?
- 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.
18.01%
0.01
33.31%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
2.92%
EBIT Growth (5y)
12.75%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.89
Net Debt to Equity (avg)
-0.06
Sales to Capital Employed (avg)
0.93
Tax Ratio
27.24%
Dividend Payout Ratio
21.60%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.59%
ROE (avg)
8.74%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.81
EV to EBIT
7.94
EV to EBITDA
5.69
EV to Capital Employed
0.79
EV to Sales
0.78
PEG Ratio
0.33
Dividend Yield
0.08%
ROCE (Latest)
10.00%
ROE (Latest)
8.72%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
8What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at JPY 1.74
NET SALES(Q)
At JPY 15,313 MM has Grown at 29.94%
DIVIDEND PAYOUT RATIO(Y)
Highest at 38%
RAW MATERIAL COST(Y)
Fallen by 1.32% (YoY
CASH AND EQV(HY)
Highest at JPY 8,607 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 2.36%
-5What is not working for the Company
ROCE(HY)
Lowest at 7.96%
INTEREST(Q)
At JPY 9 MM has Grown at 200%
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.74%
Here's what is working for Hokko Chemical Industry Co., Ltd.
Net Sales
At JPY 15,313 MM has Grown at 29.94%
over average net sales of the previous four periods of JPY 11,784.75 MMMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Dividend per share
Highest at JPY 1.74 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Cash and Eqv
Highest at JPY 8,607 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 2.36%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend Payout Ratio
Highest at 38%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 1.32% (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 9 MM has Grown at 200%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 1.74%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






