Kanemitsu Corp. (7208) 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

SERENDIP Holdings Co. Ltd.

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Tein, Inc.

Car Mate MFG Co., Ltd.

Kanemitsu Corp.

Nikki Co., Ltd.

Mitsuchi Corp.

Sawafuji Electric Co., Ltd.

J-MAX Co., Ltd.

Sanko Co., Ltd. (Nagano)

FALTEC Co., Ltd.

Why is Kanemitsu Corp. ?

Poor Management Efficiency with a low ROE of 3.36%

The company has been able to generate a Return on Equity (avg) of 3.36% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 18.86

Poor long term growth as Net Sales has grown by an annual rate of 10.13% and Operating profit at 31.09% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 18.86
The company has been able to generate a Return on Equity (avg) of 3.36% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.13% and Operating profit at 31.09% over the last 5 years

Flat results in Jun 26

OPERATING PROFIT(Q) Lowest at JPY 359.48 MM
OPERATING PROFIT MARGIN(Q) Lowest at 13.19 %
PRE-TAX PROFIT(Q) Lowest at JPY 201.53 MM

With ROE of 5.89%, it has a very attractive valuation with a 0.50 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 47.53%, its profits have risen by 40.2% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kanemitsu Corp. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Kanemitsu Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kanemitsu Corp.

-100.0%

1.67

26.05%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.13%

EBIT Growth (5y)

31.09%

EBIT to Interest (avg)

40.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.89

Tax Ratio

29.67%

Dividend Payout Ratio

25.12%

Pledged Shares

Institutional Holding

ROCE (avg)

6.87%

ROE (avg)

3.36%

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

0.50

EV to EBIT

2.56

EV to EBITDA

1.44

EV to Capital Employed

0.29

EV to Sales

0.22

PEG Ratio

0.21

Dividend Yield

ROCE (Latest)

11.22%

ROE (Latest)

5.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -40.68 %

CASH AND EQV(HY)

Highest at JPY 10,475.07 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 9.27 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.95 times

-6What is not working for the Company

OPERATING PROFIT(Q)

Lowest at JPY 359.48 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.19 %

PRE-TAX PROFIT(Q)

Lowest at JPY 201.53 MM

NET PROFIT(Q)

Lowest at JPY 123.29 MM

EPS(Q)

Lowest at JPY 25.56

Here's what is working for Kanemitsu Corp.

Debt-Equity Ratio

Lowest at -40.68 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 10,475.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 9.27 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.95 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Kanemitsu Corp.

Operating Profit

Lowest at JPY 359.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 13.19 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 201.53 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 123.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -37.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 25.56

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)