KANRO Co., Ltd. (2216) 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

WARABEYA NICHIYO HOLDINGS Co., Ltd.

Nitto Fuji Flour Milling Co., Ltd.

Gift Holdings, Inc.

Taiyo Kagaku Co., Ltd.

Nagatanien Holdings Co., Ltd.

KANRO Co., Ltd.

Fujicco Co., Ltd.

KOIKE-YA, Inc.

EBARA Foods Industry, Inc.

Key Coffee, Inc.

Takasago International Corp.

Why is KANRO Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Operating profit has grown by an annual rate 35.90%

The company has declared Positive results for the last 3 consecutive quarters

RAW MATERIAL COST(Y) Fallen by -2.33% (YoY)
NET SALES(Q) Highest at JPY 10,378.89 MM
NET PROFIT(Q) Highest at JPY 1,018.89 MM

With ROE of 19.65%, it has a very attractive valuation with a 3.84 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 9.00%, its profits have risen by 29.1% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 9.00% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to KANRO Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is KANRO Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

KANRO Co., Ltd.

9.0%

-0.65

80.50%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.98%

EBIT Growth (5y)

35.90%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.91

Tax Ratio

25.81%

Dividend Payout Ratio

39.99%

Pledged Shares

Institutional Holding

ROCE (avg)

21.29%

ROE (avg)

12.96%

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

3.84

EV to EBIT

13.79

EV to EBITDA

10.23

EV to Capital Employed

4.64

EV to Sales

1.90

PEG Ratio

0.67

Dividend Yield

0.02%

ROCE (Latest)

33.68%

ROE (Latest)

19.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.33% (YoY

NET SALES(Q)

Highest at JPY 10,378.89 MM

NET PROFIT(Q)

Highest at JPY 1,018.89 MM

EPS(Q)

Highest at JPY 24.01

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 83,147.81

DEBT-EQUITY RATIO (HY)

Highest at -17.11 %

INTEREST(Q)

Highest at JPY 2.12 MM

Here's what is working for KANRO Co., Ltd.

Net Sales

Highest at JPY 10,378.89 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 1,018.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 24.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -2.33% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 412.53 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 KANRO Co., Ltd.

Interest Coverage Ratio

Lowest at 83,147.81 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 2.12 MM has Grown at 186.74%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 2.12 MM

in the last five periods and Increased by 186.74% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -17.11 %

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