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.

Hokushin Co., Ltd.

Nankai Plywood Co., Ltd.

Takasho Co., Ltd.

Sakata Seed Corp.

UPR Corp.

Daiken Corp.

C.S. Lumber Co., Inc.

Kaneko Seeds Co., Ltd.

Wood One 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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.19% and Operating profit at -226.72% over the last 5 years
The company is Net-Debt Free
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 2.19% and Operating profit at -226.72% over the last 5 years

With a growth in Net Sales of 10.93%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At JPY 37.17 MM has Grown at 359.96%
NET PROFIT(Q) At JPY 24.45 MM has Grown at 319.34%
RAW MATERIAL COST(Y) Fallen by -24.62% (YoY)

With ROCE of -1.42%, it has a risky 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 -14.88%, its profits have fallen by -197.2%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hokushin Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hokushin Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hokushin Co., Ltd.

-13.45%

-0.53

25.39%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.19%

EBIT Growth (5y)

-226.72%

EBIT to Interest (avg)

10.04

Debt to EBITDA (avg)

8.12

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.96

Tax Ratio

25.38%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.31%

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

NA (Loss Making)

Industry P/E

Price to Book Value

0.48

EV to EBIT

-47.71

EV to EBITDA

32.85

EV to Capital Employed

0.68

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.42%

ROE (Latest)

-0.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

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

22What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 37.17 MM has Grown at 359.96%

NET PROFIT(Q)

At JPY 24.45 MM has Grown at 319.34%

RAW MATERIAL COST(Y)

Fallen by -24.62% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 42.35 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.67 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.78 times

NET SALES(Q)

Highest at JPY 2,799.37 MM

-8What is not working for the Company

INTEREST(HY)

At JPY 26.53 MM has Grown at 32.82%

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

Pre-Tax Profit

At JPY 37.17 MM has Grown at 359.96%

over average net sales of the previous four periods of JPY -14.3 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 24.45 MM has Grown at 319.34%

over average net sales of the previous four periods of JPY -11.15 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 2,799.37 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debt-Equity Ratio

Lowest at 42.35 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.67 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.78 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -24.62% (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

At JPY 26.53 MM has Grown at 32.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)