Kaneko Seeds Co., Ltd. (1376) 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

Nihon Decoluxe Co., Ltd.

Hokushin Co., Ltd.

Kaneko Seeds Co., Ltd.

Nankai Plywood Co., Ltd.

Sakata Seed Corp.

UPR Corp.

Takasho Co., Ltd.

Daiken Corp.

C.S. Lumber Co., Inc.

Wood One Co., Ltd.

Seven Industries Co., Ltd.

Why is Kaneko Seeds Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.62%

The company has been able to generate a Return on Equity (avg) of 5.62% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 0.54% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.62% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.84% and Operating profit at 0.54% over the last 5 years

Flat results in May 26

INTEREST(HY) At JPY 13.33 MM has Grown at 77.52%
CASH AND EQV(HY) Lowest at JPY 4,557.72 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 2.57 times

With ROE of 5.12%, it has a fair valuation with a 0.65 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 6.50%, its profits have risen by 5.8% ; the PEG ratio of the company is 2.2
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

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.

7.23%

0.55

24.20%

Japan Nikkei 225

43.58%

1.48

29.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.84%

EBIT Growth (5y)

0.54%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

2.42

Tax Ratio

24.48%

Dividend Payout Ratio

35.51%

Pledged Shares

Institutional Holding

ROCE (avg)

8.02%

ROE (avg)

5.62%

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

0.65

EV to EBIT

9.67

EV to EBITDA

7.32

EV to Capital Employed

0.64

EV to Sales

0.24

PEG Ratio

2.18

Dividend Yield

0.07%

ROCE (Latest)

6.59%

ROE (Latest)

5.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

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

9What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 42.51%

DIVIDEND PER SHARE(HY)

Highest at JPY 2.57

NET SALES(Q)

Highest at JPY 25,636.26 MM

OPERATING PROFIT(Q)

Highest at JPY 1,404.83 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,261.04 MM

NET PROFIT(Q)

Highest at JPY 954.48 MM

EPS(Q)

Highest at JPY 87.04

-10What is not working for the Company

INTEREST(HY)

At JPY 13.33 MM has Grown at 77.52%

CASH AND EQV(HY)

Lowest at JPY 4,557.72 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.57 times

Here's what is working for Kaneko Seeds Co., Ltd.

Dividend per share

Highest at JPY 2.57 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 42.51% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at JPY 25,636.26 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,404.83 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 1,261.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 954.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 87.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Here's what is not working for Kaneko Seeds Co., Ltd.

Interest

At JPY 13.33 MM has Grown at 77.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 4,557.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 2.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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