Kaneka Corp. (4118) 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

Sumitomo Chemical Co., Ltd.

Nifco, Inc.

Tosoh Corp.

Air Water, Inc.

Kaneka Corp.

Nippon Sanso Holdings Corp.

UBE Corp.

NOF Corp.

Daicel Corp.

Mitsubishi Gas Chemical Co., Inc.

Resonac Holdings Corp.

Why is Kaneka Corp. ?

Poor long term growth as Operating profit has grown by an annual rate 8.45% of over the last 5 years

Flat results in Jun 25

INTEREST(HY) At JPY 2,030 MM has Grown at 6.79%
DEBT-EQUITY RATIO (HY) Highest at 35.69 %
INVENTORY TURNOVER RATIO(HY) Lowest at 3.01%

With ROCE of 6.17%, it has a very attractive valuation with a 0.66 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 18.72%, its profits have risen by 40.9% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kaneka Corp. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kaneka Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Kaneka Corp.

18.72%

1774.98

23.27%

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)

6.06%

EBIT Growth (5y)

8.45%

EBIT to Interest (avg)

20.06

Debt to EBITDA (avg)

1.50

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.22

Tax Ratio

27.10%

Dividend Payout Ratio

32.43%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

6.80%

ROE (avg)

6.41%

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

0.55

EV to EBIT

10.74

EV to EBITDA

5.07

EV to Capital Employed

0.66

EV to Sales

0.52

PEG Ratio

0.16

Dividend Yield

0.01%

ROCE (Latest)

6.17%

ROE (Latest)

7.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.65%

-8What is not working for the Company

INTEREST(HY)

At JPY 2,030 MM has Grown at 6.79%

DEBT-EQUITY RATIO (HY)

Highest at 35.69 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.01%

PRE-TAX PROFIT(Q)

At JPY 7,113 MM has Fallen at -28.6%

NET PROFIT(Q)

At JPY 4,436.1 MM has Fallen at -36.33%

Here's what is working for Kaneka Corp.

Debtors Turnover Ratio

Highest at 4.65%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 11,734 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 Kaneka Corp.

Interest

At JPY 2,030 MM has Grown at 6.79%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 7,113 MM has Fallen at -28.6%

over average net sales of the previous four periods of JPY 9,961.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 4,436.1 MM has Fallen at -36.33%

over average net sales of the previous four periods of JPY 6,967.45 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 35.69 %

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

Inventory Turnover Ratio

Lowest at 3.01%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio