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.

Hokko Chemical Industry Co., Ltd.

Agro-Kanesho Co., Ltd.

Fumakilla Ltd.

Nihon Nohyaku Co., Ltd.

Katakura & Co-Op Agri Corp.

Kumiai Chemical Industry Co., Ltd.

Why is Hokko Chemical Industry Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 2.92% over the last 5 years

Flat results in Nov 25

NET SALES(Q) At JPY 7,547 MM has Fallen at -37.77%
INTEREST COVERAGE RATIO(Q) Lowest at 18,400
OPERATING PROFIT(Q) Lowest at JPY 552 MM

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 28.18%, 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

Underperformed the market in the last 1 year

The stock has generated a return of 28.18% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%

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.

28.18%

0.40

33.74%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

0.91

Tax Ratio

27.24%

Dividend Payout Ratio

27.08%

Pledged Shares

Institutional Holding

ROCE (avg)

8.59%

ROE (avg)

8.74%

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

0.81

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

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

6What is working for the Company

ROCE(HY)

Highest at 8.99%

DIVIDEND PER SHARE(HY)

Highest at JPY 4.09

CASH AND EQV(HY)

Highest at JPY 22,964 MM

DEBT-EQUITY RATIO (HY)

Lowest at -23.11 %

-15What is not working for the Company

NET SALES(Q)

At JPY 7,547 MM has Fallen at -37.77%

INTEREST COVERAGE RATIO(Q)

Lowest at 18,400

OPERATING PROFIT(Q)

Lowest at JPY 552 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.31 %

PRE-TAX PROFIT(Q)

Lowest at JPY 342 MM

NET PROFIT(Q)

Lowest at JPY 332.76 MM

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

Dividend per share

Highest at JPY 4.09 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 22,964 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -23.11 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Net Sales

At JPY 7,547 MM has Fallen at -37.77%

over average net sales of the previous four periods of JPY 12,128 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 342 MM has Fallen at -78.23%

over average net sales of the previous four periods of JPY 1,571.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 332.76 MM has Fallen at -71.21%

over average net sales of the previous four periods of JPY 1,155.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 18,400

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 552 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 342 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 332.76 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)