ScoreWhy is Hokuetsu Metal Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.34%
- The company has been able to generate a Return on Capital Employed (avg) of 3.34% signifying low profitability per unit of total capital (equity and debt)
2
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.34%
3
With a fall in Net Sales of -9.66%, the company declared Very Negative results in Jun 25
- The company has declared negative results for the last 7 consecutive quarters
- INTEREST(HY) At JPY 11.4 MM has Grown at 9.74%
- NET SALES(Q) At JPY 6,488.51 MM has Fallen at -9.66%
- INTEREST COVERAGE RATIO(Q) Lowest at 5,725.43
4
Below par performance in long term as well as near term
- Along with generating -6.63% 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 Ferrous Metals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hokuetsu Metal Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hokuetsu Metal Co., Ltd.
-7.49%
-0.71
19.55%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.95%
EBIT Growth (5y)
-14.09%
EBIT to Interest (avg)
19.76
Debt to EBITDA (avg)
1.28
Net Debt to Equity (avg)
0.03
Sales to Capital Employed (avg)
1.48
Tax Ratio
25.96%
Dividend Payout Ratio
30.28%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.34%
ROE (avg)
3.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.31
EV to EBIT
8.93
EV to EBITDA
3.45
EV to Capital Employed
0.33
EV to Sales
0.21
PEG Ratio
0.46
Dividend Yield
0.04%
ROCE (Latest)
3.66%
ROE (Latest)
3.14%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -9.02% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 2.82 %
-29What is not working for the Company
INTEREST(HY)
At JPY 11.4 MM has Grown at 9.74%
NET SALES(Q)
At JPY 6,488.51 MM has Fallen at -9.66%
INTEREST COVERAGE RATIO(Q)
Lowest at 5,725.43
CASH AND EQV(HY)
Lowest at JPY 4,320.22 MM
OPERATING PROFIT(Q)
Lowest at JPY 292.91 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.51 %
PRE-TAX PROFIT(Q)
Lowest at JPY 65.39 MM
NET PROFIT(Q)
Lowest at JPY 36.32 MM
EPS(Q)
Lowest at JPY 8.89
Here's what is working for Hokuetsu Metal Co., Ltd.
Debt-Equity Ratio
Lowest at 2.82 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -9.02% (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 Metal Co., Ltd.
Pre-Tax Profit
At JPY 65.39 MM has Fallen at -65.63%
over average net sales of the previous four periods of JPY 190.3 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 36.32 MM has Fallen at -73.98%
over average net sales of the previous four periods of JPY 139.62 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Net Sales
At JPY 6,488.51 MM has Fallen at -9.66%
over average net sales of the previous four periods of JPY 7,182.44 MMMOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Interest Coverage Ratio
Lowest at 5,725.43
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At JPY 11.4 MM has Grown at 9.74%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 292.91 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 4.51 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 65.39 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 36.32 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 8.89
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Cash and Eqv
Lowest at JPY 4,320.22 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income
Highest at JPY 0.71 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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