Hokushin Co., Ltd. (7897) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nihon Decoluxe Co., Ltd.

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Kaneko Seeds Co., Ltd.

Takasho Co., Ltd.

Hokushin Co., Ltd.

Seven Industries Co., Ltd.

Why is Hokushin Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.61%

The company has been able to generate a Return on Capital Employed (avg) of 2.61% signifying low profitability per unit of total capital (equity and debt)

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 -0.60% and Operating profit at -179.01% 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 3.73% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.60% and Operating profit at -179.01% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At JPY -10.64 MM has Grown at -237.9%
ROCE(HY) Lowest at -0.64%
INTEREST(Q) Highest at JPY 12.23 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -6.14%, its profits have fallen by -87.2%

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 Hokushin Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hokushin Co., Ltd.

-100.0%

-0.29

35.12%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.60%

EBIT Growth (5y)

-179.01%

EBIT to Interest (avg)

11.45

Debt to EBITDA (avg)

7.52

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.98

Tax Ratio

49.01%

Dividend Payout Ratio

278.75%

Pledged Shares

Institutional Holding

ROCE (avg)

2.61%

ROE (avg)

3.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

162

Industry P/E

Price to Book Value

0.57

EV to EBIT

-96.88

EV to EBITDA

27.65

EV to Capital Employed

0.72

EV to Sales

0.65

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.75%

ROE (Latest)

0.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

12What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 43.02 MM has Grown at 424.04%

NET PROFIT(Q)

At JPY 28.72 MM has Grown at 356.21%

RAW MATERIAL COST(Y)

Fallen by -7.41% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 59.38 %

OPERATING PROFIT(Q)

Highest at JPY 123.26 MM

OPERATING PROFIT MARGIN(Q)

Highest at 4.6 %

-19What is not working for the Company

NET PROFIT(HY)

At JPY -10.64 MM has Grown at -237.9%

ROCE(HY)

Lowest at -0.64%

INTEREST(Q)

Highest at JPY 12.23 MM

Here's what is working for Hokushin Co., Ltd.

Pre-Tax Profit

At JPY 43.02 MM has Grown at 424.04%

over average net sales of the previous four periods of JPY -13.28 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 28.72 MM has Grown at 356.21%

over average net sales of the previous four periods of JPY -11.21 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 123.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 4.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 59.38 %

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 -7.41% (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 Hokushin Co., Ltd.

Interest

Highest at JPY 12.23 MM

in the last five periods and Increased by 6.32% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)