ScoreWhy is HOKUETSU INDUSTRIES CO., LTD. ?
1
Weak Long Term Fundamental Strength with a 22.91% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Operating profit has grown by an annual rate 22.91% of over the last 5 years
3
Flat results in Jun 26
- DEBT-EQUITY RATIO (HY) Highest at -8.79 %
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.23 times
- INTEREST(Q) Highest at JPY 31.02 MM
4
With ROE of 12.17%, it has a very attractive valuation with a 1.22 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 30.20%, its profits have risen by 3.4% ; the PEG ratio of the company is 3
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 30.20% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 43.52%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to HOKUETSU INDUSTRIES CO., LTD. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is HOKUETSU INDUSTRIES CO., LTD. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
HOKUETSU INDUSTRIES CO., LTD.
30.2%
0.20
42.99%
Japan Nikkei 225
43.52%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.06%
EBIT Growth (5y)
22.91%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.28
Sales to Capital Employed (avg)
1.16
Tax Ratio
29.74%
Dividend Payout Ratio
35.12%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
19.82%
ROE (avg)
10.40%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.22
EV to EBIT
5.58
EV to EBITDA
4.88
EV to Capital Employed
1.28
EV to Sales
0.78
PEG Ratio
2.99
Dividend Yield
NA
ROCE (Latest)
22.90%
ROE (Latest)
12.17%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
ROCE(HY)
Highest at 14.43%
RAW MATERIAL COST(Y)
Fallen by -22.09% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 3.14 times
OPERATING PROFIT(Q)
Highest at JPY 2,716.37 MM
OPERATING PROFIT MARGIN(Q)
Highest at 19.76 %
PRE-TAX PROFIT(Q)
Highest at JPY 2,588.27 MM
EPS(Q)
Highest at JPY 66.11
-12What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -8.79 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.23 times
INTEREST(Q)
Highest at JPY 31.02 MM
Here's what is working for HOKUETSU INDUSTRIES CO., LTD.
Operating Profit
Highest at JPY 2,716.37 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 19.76 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 2,588.27 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
EPS
Highest at JPY 66.11
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Highest at 3.14 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -22.09% (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 HOKUETSU INDUSTRIES CO., LTD.
Interest
Highest at JPY 31.02 MM
in the last five periods and Increased by 6.7% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -8.79 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 3.23 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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