ScoreWhy is Hokuetsu Corp. ?
1
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 5.18% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 7.38% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 5.18% over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- NET PROFIT(Q) At JPY 866.86 MM has Fallen at -78.53%
- RAW MATERIAL COST(Y) Grown by 7.08% (YoY)
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.18 times
4
With ROCE of 2.84%, it has a very attractive valuation with a 0.78 Enterprise value to Capital Employed
- 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 -14.88%, its profits have fallen by -42.7%
- At the current price, the company has a high dividend yield of 0
5
Below par performance in long term as well as near term
- Along with generating -14.88% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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 Paper, Forest & Jute Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hokuetsu Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hokuetsu Corp.
-14.88%
-0.78
32.60%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.18%
EBIT Growth (5y)
52.90%
EBIT to Interest (avg)
24.06
Debt to EBITDA (avg)
2.95
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
0.84
Tax Ratio
27.22%
Dividend Payout Ratio
23.83%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.77%
ROE (avg)
7.38%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
0.72
EV to EBIT
27.63
EV to EBITDA
11.66
EV to Capital Employed
0.78
EV to Sales
0.96
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.84%
ROE (Latest)
4.10%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 247.83%
-21What is not working for the Company
NET PROFIT(Q)
At JPY 866.86 MM has Fallen at -78.53%
RAW MATERIAL COST(Y)
Grown by 7.08% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.18 times
INTEREST(Q)
Highest at JPY 287 MM
Here's what is working for Hokuetsu Corp.
Dividend Payout Ratio
Highest at 247.83%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at JPY 3,642 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Hokuetsu Corp.
Net Profit
At JPY 866.86 MM has Fallen at -78.53%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 287 MM has Grown at 44.22%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 287 MM
in the last five periods and Increased by 44.22% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 3.18 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 7.08% (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 0.49 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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