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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fuso Chemical Co., Ltd.

Fuji Oil Holdings, Inc.

ARIAKE JAPAN Co., Ltd.

Kameda Seika Co., Ltd.

The Nisshin OilliO Group, Ltd.

Morinaga & Co., Ltd.

T. Hasegawa Co., Ltd.

NIPPN Corp.

Kagome 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

Positive results in Jun 25

ROCE(HY) Highest at 31.95%
NET SALES(Q) At JPY 33,873 MM has Grown at 40.75%
RAW MATERIAL COST(Y) Fallen by -2.8% (YoY)

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 -6.29%, 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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.29% 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 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.

-6.29%

-0.24

23.91%

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)

-0.11%

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)

1.04

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

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

18What is working for the Company

ROCE(HY)

Highest at 31.95%

NET SALES(Q)

At JPY 33,873 MM has Grown at 40.75%

RAW MATERIAL COST(Y)

Fallen by -2.8% (YoY

NET PROFIT(9M)

Higher at JPY 7,035.32 MM

CASH AND EQV(HY)

Highest at JPY 27,033 MM

EPS(Q)

Highest at JPY 1,042.86

-12What is not working for the Company

INTEREST(HY)

At JPY 106 MM has Grown at 89.29%

DEBT-EQUITY RATIO (HY)

Highest at 31.42 %

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

Net Sales

At JPY 33,873 MM has Grown at 40.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

At JPY 4,316.32 MM has Grown at 113.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 33,873 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

EPS

Highest at JPY 1,042.86

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 27,033 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.8% (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 2,503 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 2,503 MM has Grown at 70.85%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Kameda Seika Co., Ltd.

Interest

At JPY 61 MM has Grown at 35.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 61 MM

in the last five periods and Increased by 35.56% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 31.42 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio