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.

Kameda Seika Co., Ltd.

ARIAKE JAPAN Co., Ltd.

Kagome Co., Ltd.

NIPPN Corp.

Morinaga & Co., Ltd.

T. Hasegawa Co., Ltd.

The Nisshin OilliO Group, 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 4.54% and Operating profit at 4.68% over the last 5 years

With a growth in Operating Profit of 63.11%, the company declared Very Positive results in Mar 26

DIVIDEND PER SHARE(HY) Highest at JPY 8.38
RAW MATERIAL COST(Y) Fallen by -3.03% (YoY)
CASH AND EQV(HY) Highest at JPY 39,311 MM

With ROCE of 5.77%, it has a attractive valuation with a 0.97 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 -67.63%, its profits have risen by 53.7% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -67.63% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kameda Seika Co., Ltd.

-1.12%

-0.96

74.23%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.54%

EBIT Growth (5y)

4.68%

EBIT to Interest (avg)

57.36

Debt to EBITDA (avg)

1.09

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.00

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

0.97

EV to EBIT

16.88

EV to EBITDA

7.55

EV to Capital Employed

0.97

EV to Sales

0.96

PEG Ratio

0.24

Dividend Yield

ROCE (Latest)

5.77%

ROE (Latest)

7.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Bearish

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

9What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 8.38

RAW MATERIAL COST(Y)

Fallen by -3.03% (YoY

CASH AND EQV(HY)

Highest at JPY 39,311 MM

NET SALES(Q)

At JPY 33,741 MM has Grown at 29.97%

-21What is not working for the Company

NET PROFIT(Q)

At JPY 751 MM has Fallen at -70.53%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,160.89

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INTEREST(Q)

Highest at JPY 358 MM

EPS(Q)

Lowest at JPY -4.11

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

Dividend per share

Highest at JPY 8.38 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

At JPY 33,741 MM has Grown at 29.97%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 39,311 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -3.03% (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 2,815 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.

Net Profit

At JPY 751 MM has Fallen at -70.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 358 MM has Grown at 258%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,160.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 358 MM

in the last five periods and Increased by 258% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -4.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)