Japan Material Co., Ltd. (6055) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sumitomo Chemical Co., Ltd.

Japan Material Co., Ltd.

Nifco, Inc.

Tosoh Corp.

Air Water, Inc.

Kaneka Corp.

UBE Corp.

NOF Corp.

Daicel Corp.

Mitsubishi Gas Chemical Co., Inc.

Resonac Holdings Corp.

Why is Japan Material Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.51%

Healthy long term growth as Net Sales has grown by an annual rate of 9.00%
Company has very low debt and has enough cash to service the debt requirements

Positive results in Jun 25

NET SALES(HY) At JPY 30,582 MM has Grown at 29.6%
INTEREST COVERAGE RATIO(Q) Highest at 350,500
RAW MATERIAL COST(Y) Fallen by -18.15% (YoY)

With ROE of 14.72%, it has a very attractive valuation with a 2.79 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 -0.66%, its profits have risen by 39.5% ; the PEG ratio of the company is 0.5

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Japan Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

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

Is Japan Material Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Japan Material Co., Ltd.

-0.66%

-0.36

40.96%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.00%

EBIT Growth (5y)

6.67%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.02

Tax Ratio

29.65%

Dividend Payout Ratio

31.33%

Pledged Shares

Institutional Holding

ROCE (avg)

30.96%

ROE (avg)

16.51%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.79

EV to EBIT

12.06

EV to EBITDA

10.81

EV to Capital Employed

3.57

EV to Sales

2.56

PEG Ratio

0.48

Dividend Yield

ROCE (Latest)

29.59%

ROE (Latest)

14.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

9What is working for the Company

NET SALES(HY)

At JPY 30,582 MM has Grown at 29.6%

INTEREST COVERAGE RATIO(Q)

Highest at 350,500

RAW MATERIAL COST(Y)

Fallen by -18.15% (YoY

NET PROFIT(9M)

Higher at JPY 7,082 MM

CASH AND EQV(HY)

Highest at JPY 30,210 MM

DEBT-EQUITY RATIO (HY)

Lowest at -25.87 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.16%

-4What is not working for the Company

INTEREST(HY)

At JPY 3 MM has Grown at 50%

Here's what is working for Japan Material Co., Ltd.

Interest Coverage Ratio

Highest at 350,500

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At JPY 30,582 MM has Grown at 29.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 30,210 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -25.87 %

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 5.16%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at JPY 7,082 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -18.15% (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 Japan Material Co., Ltd.

Interest

At JPY 3 MM has Grown at 50%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)