Kagome Co., Ltd. (2811) 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

Fuji Oil Holdings, Inc.

Kagome Co., Ltd.

Kikkoman Corp.

Toyo Suisan Kaisha, Ltd.

Morinaga & Co., Ltd.

Yamazaki Baking Co., Ltd.

Ajinomoto Co., Inc.

Nissin Foods Holdings Co., Ltd.

Meiji Holdings Co., Ltd.

CALBEE, Inc.

House Foods Group, Inc.

Why is Kagome Co., Ltd. ?

High Management Efficiency with a high ROCE of 10.52%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.52%

Flat results in Jun 25

NET PROFIT(HY) At JPY 6,181 MM has Grown at -64.53%
ROCE(HY) Lowest at 8.12%
CASH AND EQV(HY) Lowest at JPY 34,808 MM

With ROCE of 11.22%, it has a very attractive valuation with a 1.45 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 2.19%, its profits have fallen by -60.1%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 2.19% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.59%

Real-Time Research Report

Verdict Report

How 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.

-100.0%

-1.27

16.42%

Japan Nikkei 225

38.59%

1.45

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.01%

EBIT Growth (5y)

15.02%

EBIT to Interest (avg)

13.34

Debt to EBITDA (avg)

1.20

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

1.14

Tax Ratio

24.29%

Dividend Payout Ratio

20.47%

Pledged Shares

Institutional Holding

ROCE (avg)

10.52%

ROE (avg)

9.36%

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

1.58

EV to EBIT

12.88

EV to EBITDA

8.74

EV to Capital Employed

1.45

EV to Sales

1.07

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

11.22%

ROE (Latest)

5.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 28,472 MM

RAW MATERIAL COST(Y)

Fallen by -0.06% (YoY

PRE-TAX PROFIT(Q)

At JPY 5,622 MM has Grown at 65.03%

NET PROFIT(Q)

At JPY 3,368 MM has Grown at 92.96%

-15What is not working for the Company

NET PROFIT(HY)

At JPY 6,181 MM has Grown at -64.53%

ROCE(HY)

Lowest at 8.12%

CASH AND EQV(HY)

Lowest at JPY 34,808 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.97%

NET SALES(Q)

At JPY 71,514 MM has Fallen at -6.72%

Here's what is working for Kagome Co., Ltd.

Operating Cash Flow

Highest at JPY 28,472 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit

At JPY 5,622 MM has Grown at 65.03%

over average net sales of the previous four periods of JPY 3,406.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 3,368 MM has Grown at 92.96%

over average net sales of the previous four periods of JPY 1,745.48 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (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.

Net Sales

At JPY 71,514 MM has Fallen at -6.72%

over average net sales of the previous four periods of JPY 76,664.5 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 34,808 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.97%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio