Hokuetsu Corp. (3865) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Kodoshi Corp.

Tokushu Tokai Paper Co., Ltd.

Nippon Filcon Co., Ltd.

Rengo Co., Ltd.

Daio Paper Corp.

Mitsubishi Paper Mills Ltd.

Tomoegawa Corp.

Nichiban Co., Ltd.

Hokuetsu Corp.

Nippon Paper Industries Co., Ltd.

Chuetsu Pulp & Paper Co., Ltd.

Why is Hokuetsu Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.93% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.38% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.93% over the last 5 years

With a fall in Net Sales of -2.54%, the company declared Very Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 3,403.59
INVENTORY TURNOVER RATIO(HY) Lowest at 3.32%
NET SALES(Q) Lowest at JPY 72,354 MM

Below par performance in long term as well as near term

Along with generating -45.77% 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 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 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.

-44.79%

-0.82

33.21%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.93%

EBIT Growth (5y)

11.97%

EBIT to Interest (avg)

24.06

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.87

Tax Ratio

27.22%

Dividend Payout Ratio

23.83%

Pledged Shares

Institutional Holding

ROCE (avg)

4.77%

ROE (avg)

7.38%

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

0.71

EV to EBIT

12.55

EV to EBITDA

7.49

EV to Capital Employed

0.76

EV to Sales

0.81

PEG Ratio

11.97

Dividend Yield

0.05%

ROCE (Latest)

6.07%

ROE (Latest)

5.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

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

ROCE(HY)

Highest at 5.93%

DEBT-EQUITY RATIO (HY)

Lowest at 26.82 %

RAW MATERIAL COST(Y)

Fallen by -6.18% (YoY

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,403.59

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.32%

NET SALES(Q)

Lowest at JPY 72,354 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 3,303 MM

NET PROFIT(Q)

Lowest at JPY 2,187 MM

EPS(Q)

Lowest at JPY 12.99

Here's what is working for Hokuetsu Corp.

Debt-Equity Ratio

Lowest at 26.82 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -6.18% (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 3,376 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 Hokuetsu Corp.

Interest Coverage Ratio

Lowest at 3,403.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 72,354 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY 3,303 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 2,187 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 12.99

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 3.32%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio