Why is Hokuto Corp. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- 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 5.47% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 3.13% and Operating profit at 10.95% over the last 5 years
3
Flat results in Jun 25
- PRE-TAX PROFIT(Q) At JPY 149 MM has Fallen at -83.87%
- NET PROFIT(Q) At JPY 100.81 MM has Fallen at -83.25%
4
With ROE of 8.96%, it has a very attractive valuation with a 1.05 Price to Book Value
- Over the past year, while the stock has generated a return of 16.68%, its profits have risen by 54.2% ; the PEG ratio of the company is 0.2
5
Underperformed the market in the last 1 year
- The stock has generated a return of 16.68% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%
How much should you hold?
- Overall Portfolio exposure to Hokuto Corp. should be less than 10%
- Overall Portfolio exposure to Other Agricultural Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hokuto Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hokuto Corp.
15.75%
0.63
15.41%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
3.13%
EBIT Growth (5y)
10.95%
EBIT to Interest (avg)
30.04
Debt to EBITDA (avg)
2.45
Net Debt to Equity (avg)
0.17
Sales to Capital Employed (avg)
0.91
Tax Ratio
26.36%
Dividend Payout Ratio
35.56%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.05%
ROE (avg)
5.47%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.05
EV to EBIT
10.51
EV to EBITDA
5.70
EV to Capital Employed
1.04
EV to Sales
0.83
PEG Ratio
0.22
Dividend Yield
NA
ROCE (Latest)
9.91%
ROE (Latest)
8.96%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -5.46% (YoY
NET PROFIT(9M)
Higher at JPY 5,693.36 MM
CASH AND EQV(HY)
Highest at JPY 47,374 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 13.8 %
INVENTORY TURNOVER RATIO(HY)
Highest at 7.33%
-6What is not working for the Company
PRE-TAX PROFIT(Q)
At JPY 149 MM has Fallen at -83.87%
NET PROFIT(Q)
At JPY 100.81 MM has Fallen at -83.25%
Here's what is working for Hokuto Corp.
Cash and Eqv
Highest at JPY 47,374 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 13.8 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 7.33%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -5.46% (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 Hokuto Corp.
Pre-Tax Profit
At JPY 149 MM has Fallen at -83.87%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 100.81 MM has Fallen at -83.25%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)






