Kameda Seika Co., Ltd. (2220) 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

Fuji Oil Holdings, Inc.

Fuso Chemical Co., Ltd.

NIPPN Corp.

Kagome Co., Ltd.

The Nisshin OilliO Group, Ltd.

Kameda Seika Co., Ltd.

Morinaga & Co., Ltd.

ARIAKE JAPAN Co., Ltd.

T. Hasegawa Co., Ltd.

CALBEE, Inc.

House Foods Group, Inc.

Why is Kameda Seika Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 57.36

Poor long term growth as Net Sales has grown by an annual rate of -0.11% and Operating profit at -1.10% over the last 5 years

With a growth in Net Sales of 34.1%, the company declared Very Positive results in Dec 25

RAW MATERIAL COST(Y) Fallen by -9.79% (YoY)
CASH AND EQV(HY) Highest at JPY 37,008 MM
INVENTORY TURNOVER RATIO(HY) Highest at 9.31 times

With ROCE of 7.35%, it has a attractive valuation with a 1.09 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 7.84%, its profits have risen by 96% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 7.84% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kameda Seika 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 Kameda Seika Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kameda Seika Co., Ltd.

-100.0%

0.21

25.17%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.11%

EBIT Growth (5y)

-1.10%

EBIT to Interest (avg)

57.36

Debt to EBITDA (avg)

1.09

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.02

Tax Ratio

3.24%

Dividend Payout Ratio

22.18%

Pledged Shares

Institutional Holding

ROCE (avg)

6.25%

ROE (avg)

6.91%

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

1.09

EV to EBIT

14.81

EV to EBITDA

6.87

EV to Capital Employed

1.09

EV to Sales

0.79

PEG Ratio

0.13

Dividend Yield

0.01%

ROCE (Latest)

7.35%

ROE (Latest)

8.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

15What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.79% (YoY

CASH AND EQV(HY)

Highest at JPY 37,008 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 9.31 times

NET SALES(Q)

Highest at JPY 38,544 MM

OPERATING PROFIT(Q)

Highest at JPY 6,608 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.14 %

PRE-TAX PROFIT(Q)

Highest at JPY 4,119 MM

-8What is not working for the Company

INTEREST(HY)

At JPY 199 MM has Grown at 206.15%

Here's what is working for Kameda Seika Co., Ltd.

Net Sales

At JPY 38,544 MM has Grown at 34.1%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 38,544 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 6,608 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 17.14 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 4,119 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 37,008 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 9.31 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -9.79% (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 2,613 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 Kameda Seika Co., Ltd.

Interest

At JPY 199 MM has Grown at 206.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)