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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Japan Material Co., Ltd.

NOF Corp.

Kaneka Corp.

Tosoh Corp.

Nifco, Inc.

Daicel Corp.

Resonac Holdings Corp.

UBE Corp.

Air Water, Inc.

Sumitomo Chemical Co., Ltd.

Mitsubishi Gas Chemical Co., Inc.

Why is Japan Material Co., Ltd. ?

High Management Efficiency with a high ROE of 16.51%

Company has very low debt and has enough cash to service the debt requirements

With ROE of 17.31%, it has a attractive valuation with a 3.28 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 78.15%, its profits have risen by 50% ; the PEG ratio of the company is 0.4

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Japan Material Co., Ltd.

78.15%

0.70

51.48%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.82%

EBIT Growth (5y)

8.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.00

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

3.28

EV to EBIT

12.06

EV to EBITDA

11.02

EV to Capital Employed

4.40

EV to Sales

2.93

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

36.48%

ROE (Latest)

17.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

11What is working for the Company

ROCE(HY)

Highest at 18.14%

RAW MATERIAL COST(Y)

Fallen by -11.61% (YoY

CASH AND EQV(HY)

Highest at JPY 41,027 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.34 times

DIVIDEND PER SHARE(HY)

Highest at JPY 2.32

OPERATING PROFIT(Q)

Highest at JPY 5,021 MM

OPERATING PROFIT MARGIN(Q)

Highest at 30.91 %

PRE-TAX PROFIT(Q)

Highest at JPY 4,773 MM

NET PROFIT(Q)

Highest at JPY 3,496 MM

EPS(Q)

Highest at JPY 34.02

-12What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 167,366.67

INTEREST(Q)

Highest at JPY 3 MM

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

Operating Profit

Highest at JPY 5,021 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 30.91 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 4,773 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 3,496 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 34.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 41,027 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 5.34 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 2.32

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -11.61% (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

Depreciation

Highest at JPY 383 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Japan Material Co., Ltd.

Interest

At JPY 3 MM has Grown at 50%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 167,366.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 3 MM

in the last five periods and Increased by 50% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)