ScoreWhy is Kagome Co., Ltd. ?
1
High Management Efficiency with a high ROCE of 10.52%
2
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.52%
3
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at JPY 27,153 MM
- NET PROFIT(HY) Higher at JPY 6,175 MM
- RAW MATERIAL COST(Y) Fallen by 0.06% (YoY)
4
With ROCE of 9.05%, it has a expensive valuation with a 1.28 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 -12.28%, its profits have fallen by -13%
- At the current price, the company has a high dividend yield of 0
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -12.28% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kagome Co., Ltd. should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kagome Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kagome Co., Ltd.
-11.1%
-1.97
15.35%
Japan Nikkei 225
88.41%
3.25
27.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.96%
EBIT Growth (5y)
9.04%
EBIT to Interest (avg)
13.34
Debt to EBITDA (avg)
1.20
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
1.12
Tax Ratio
24.29%
Dividend Payout Ratio
29.74%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.52%
ROE (avg)
9.36%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.37
EV to EBIT
14.16
EV to EBITDA
9.27
EV to Capital Employed
1.28
EV to Sales
1.08
PEG Ratio
NA
Dividend Yield
0.02%
ROCE (Latest)
9.05%
ROE (Latest)
8.43%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 27,153 MM
NET PROFIT(HY)
Higher at JPY 6,175 MM
RAW MATERIAL COST(Y)
Fallen by 0.06% (YoY
-13What is not working for the Company
INTEREST(9M)
At JPY 2,169 MM has Grown at 5.91%
INTEREST COVERAGE RATIO(Q)
Lowest at 897.09
NET SALES(Q)
At JPY 67,564 MM has Fallen at -8.16%
OPERATING PROFIT(Q)
Lowest at JPY 6,468 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 9.57 %
PRE-TAX PROFIT(Q)
Lowest at JPY 3,694 MM
NET PROFIT(Q)
Lowest at JPY 2,056 MM
EPS(Q)
Lowest at JPY 22.65
Here's what is working for Kagome Co., Ltd.
Operating Cash Flow
Highest at JPY 27,153 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Raw Material Cost
Fallen by 0.06% (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 Kagome Co., Ltd.
Interest Coverage Ratio
Lowest at 897.09
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At JPY 2,056 MM has Fallen at -44.44%
over average net sales of the previous four periods of JPY 3,700.25 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 2,169 MM has Grown at 5.91%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
At JPY 67,564 MM has Fallen at -8.16%
over average net sales of the previous four periods of JPY 73,566 MMMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Operating Profit
Lowest at JPY 6,468 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 9.57 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 3,694 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 3,694 MM has Fallen at -28.93%
over average net sales of the previous four periods of JPY 5,197.75 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 2,056 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 22.65
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Non Operating Income
Highest at JPY 0.26 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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