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

Ogura Clutch Co., Ltd.

SERENDIP Holdings Co. Ltd.

Kanemitsu Corp.

Mitsuchi Corp.

Sanko Co., Ltd. (Nagano)

Car Mate MFG Co., Ltd.

Sawafuji Electric Co., Ltd.

Tein, Inc.

Nikki Co., Ltd.

J-MAX Co., Ltd.

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

The company is Net-Debt Free

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Mar 26

DEBT-EQUITY RATIO (HY) Lowest at -37.37 %
CASH AND EQV(HY) Highest at JPY 8,998.37 MM
DEBTORS TURNOVER RATIO(HY) Highest at 4.57 times

With ROE of 5.89%, it has a very attractive valuation with a 0.51 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 39.34%, its profits have risen by 40.2% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 39.34% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 81.96%

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.

38.78%

1.24

25.44%

Japan Nikkei 225

81.96%

2.98

27.54%

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)

18.86

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.89

Tax Ratio

29.02%

Dividend Payout Ratio

28.37%

Pledged Shares

Institutional Holding

ROCE (avg)

4.61%

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

0.51

EV to EBIT

2.74

EV to EBITDA

1.54

EV to Capital Employed

0.31

EV to Sales

0.23

PEG Ratio

0.22

Dividend Yield

ROCE (Latest)

11.22%

ROE (Latest)

5.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

8What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -37.37 %

CASH AND EQV(HY)

Highest at JPY 8,998.37 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.57 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.57

PRE-TAX PROFIT(Q)

Highest at JPY 292.67 MM

NET PROFIT(Q)

Highest at JPY 202.24 MM

EPS(Q)

Highest at JPY 39.74

-5What is not working for the Company

INTEREST(Q)

At JPY 2.69 MM has Grown at 93.66%

INTEREST COVERAGE RATIO(Q)

Lowest at 14,221.58

OPERATING PROFIT MARGIN(Q)

Lowest at 13.68 %

Here's what is working for Kanemitsu Corp.

Debt-Equity Ratio

Lowest at -37.37 % 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

Pre-Tax Profit

Highest at JPY 292.67 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 202.24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 39.74

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 8,998.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 4.57

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for Kanemitsu Corp.

Interest

At JPY 2.69 MM has Grown at 93.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 14,221.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 13.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at JPY 0.33 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income