Japan Pure Chemical Co., Ltd. (4973) 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

Sakata Inx Corp.

BP Castrol KK

Japan Pure Chemical Co., Ltd.

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Rock Paint Co., Ltd.

Taisei Lamick Co., Ltd.

T&K Toka Co., Ltd.

Why is Japan Pure Chemical Co., Ltd. ?

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

Poor long term growth as Operating profit has grown by an annual rate -13.45% of over the last 5 years

Positive results in Jun 25

CASH AND EQV(HY) Highest at JPY 14,588.17 MM
DEBT-EQUITY RATIO (HY) Lowest at -50.41 %
INVENTORY TURNOVER RATIO(HY) Highest at 23.45%

With ROE of 11.61%, it has a very attractive valuation with a 1.42 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 2.64%, its profits have risen by 188.6% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 2.64% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Japan Pure Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial 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 Industrial Products)

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

Is Japan Pure Chemical Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Japan Pure Chemical Co., Ltd.

2.64%

0.06

23.87%

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)

-0.56%

EBIT Growth (5y)

-13.45%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

0.92

Tax Ratio

27.18%

Dividend Payout Ratio

46.03%

Pledged Shares

Institutional Holding

ROCE (avg)

8.49%

ROE (avg)

6.47%

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

1.42

EV to EBIT

23.35

EV to EBITDA

19.91

EV to Capital Employed

1.95

EV to Sales

0.93

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

8.36%

ROE (Latest)

11.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

3What is working for the Company

CASH AND EQV(HY)

Highest at JPY 14,588.17 MM

DEBT-EQUITY RATIO (HY)

Lowest at -50.41 %

INVENTORY TURNOVER RATIO(HY)

Highest at 23.45%

-11What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 15.6% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 3.29 %

PRE-TAX PROFIT(Q)

Lowest at JPY 184.52 MM

NET PROFIT(Q)

Lowest at JPY 135.18 MM

EPS(Q)

Lowest at JPY 23.22

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

Cash and Eqv

Highest at JPY 14,588.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -50.41 %

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 23.45%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Pre-Tax Profit

At JPY 184.52 MM has Fallen at -65.95%

over average net sales of the previous four periods of JPY 541.86 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 135.18 MM has Fallen at -65.74%

over average net sales of the previous four periods of JPY 394.58 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit Margin

Lowest at 3.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 184.52 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 135.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 23.22

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 15.6% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales