Why is Kaneko Seeds Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 1.95% and Operating profit at -1.74% over the last 5 years
3
Negative results in May 25
- INTEREST(HY) At JPY 7.51 MM has Grown at 19.15%
- CASH AND EQV(HY) Lowest at JPY 5,783.6 MM
- DEBT-EQUITY RATIO (HY) Highest at 0 %
4
With ROE of 5.10%, it has a very attractive valuation with a 0.67 Price to Book Value
- 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 9.32%, its profits have fallen by -0.4%
- At the current price, the company has a high dividend yield of 0.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 9.32% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
How much should you hold?
- Overall Portfolio exposure to Kaneko Seeds Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kaneko Seeds Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kaneko Seeds Co., Ltd.
9.32%
0.41
22.51%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
1.95%
EBIT Growth (5y)
-1.74%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.09
Sales to Capital Employed (avg)
2.49
Tax Ratio
23.96%
Dividend Payout Ratio
35.51%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.60%
ROE (avg)
5.73%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.67
EV to EBIT
9.27
EV to EBITDA
6.76
EV to Capital Employed
0.64
EV to Sales
0.22
PEG Ratio
NA
Dividend Yield
0.07%
ROCE (Latest)
6.88%
ROE (Latest)
5.10%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
7What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
DIVIDEND PAYOUT RATIO(Y)
Highest at 33.09%
DIVIDEND PER SHARE(HY)
Highest at JPY 2.62
NET SALES(Q)
Highest at JPY 23,297.34 MM
PRE-TAX PROFIT(Q)
Highest at JPY 1,155.28 MM
EPS(Q)
Highest at JPY 81.58
-9What is not working for the Company
INTEREST(HY)
At JPY 7.51 MM has Grown at 19.15%
CASH AND EQV(HY)
Lowest at JPY 5,783.6 MM
DEBT-EQUITY RATIO
(HY)
Highest at 0 %
Here's what is working for Kaneko Seeds Co., Ltd.
Net Sales
Highest at JPY 23,297.34 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
Highest at JPY 1,155.28 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
EPS
Highest at JPY 81.58
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Dividend per share
Highest at JPY 2.62
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Dividend Payout Ratio
Highest at 33.09%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Kaneko Seeds Co., Ltd.
Interest
At JPY 7.51 MM has Grown at 19.15%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 5,783.6 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 0 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






