ScoreWhy is Hokuetsu Corp. ?
1
Poor Management Efficiency with a low ROCE of 4.77%
- The company has been able to generate a Return on Capital Employed (avg) of 4.77% signifying low profitability per unit of total capital (equity and debt)
2
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
3
Poor long term growth as Net Sales has grown by an annual rate of 5.18% over the last 5 years
4
The company has declared Negative results for the last 4 consecutive quarters
- PRE-TAX PROFIT(Q) At JPY 1,369 MM has Fallen at -58.55%
- RAW MATERIAL COST(Y) Grown by 18.64% (YoY)
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.11 times
5
With ROCE of 2.84%, it has a attractive valuation with a 0.68 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 -12.05%, its profits have fallen by -42.7%
- At the current price, the company has a high dividend yield of 0
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.
-9.69%
-0.67
33.09%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.18%
EBIT Growth (5y)
52.90%
EBIT to Interest (avg)
25.27
Debt to EBITDA (avg)
2.52
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
0.84
Tax Ratio
35.32%
Dividend Payout Ratio
59.65%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.16%
ROE (avg)
7.38%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.58
EV to EBIT
23.95
EV to EBITDA
10.11
EV to Capital Employed
0.68
EV to Sales
0.83
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.84%
ROE (Latest)
4.10%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 3.91 times
-23What is not working for the Company
PRE-TAX PROFIT(Q)
At JPY 1,369 MM has Fallen at -58.55%
RAW MATERIAL COST(Y)
Grown by 18.64% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.11 times
INTEREST(Q)
Highest at JPY 319 MM
NET PROFIT(Q)
Fallen at -42.82%
Here's what is working for Hokuetsu Corp.
Debtors Turnover Ratio
Highest at 3.91 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at JPY 3,646 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.
Interest
At JPY 319 MM has Grown at 11.15%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 1,369 MM has Fallen at -58.55%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Interest
Highest at JPY 319 MM
in the last five periods and Increased by 11.15% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
Fallen at -42.82%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Inventory Turnover Ratio
Lowest at 3.11 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 18.64% (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 0.56 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
