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

Gift Holdings, Inc.

KANRO Co., Ltd.

WARABEYA NICHIYO HOLDINGS Co., Ltd.

Nitto Fuji Flour Milling Co., Ltd.

Taiyo Kagaku Co., Ltd.

Key Coffee, Inc.

KOIKE-YA, Inc.

EBARA Foods Industry, Inc.

Fujicco Co., Ltd.

Takasago International Corp.

Nagatanien Holdings Co., Ltd.

Why is KANRO Co., Ltd. ?

Strong Long Term Fundamental Strength with a 41.18% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 21.29% signifying high profitability per unit of total capital (equity and debt)

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

INTEREST COVERAGE RATIO(Q) Lowest at 65,402.18
DEBT-EQUITY RATIO (HY) Highest at -9.91 %
INTEREST(Q) Highest at JPY 2.75 MM

With ROE of 18.01%, it has a very attractive valuation with a 3.04 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 -74.51%, its profits have risen by 4.1%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -74.51% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

-74.88%

-0.70

79.77%

Japan Nikkei 225

69.64%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.32%

EBIT Growth (5y)

41.18%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.86

Tax Ratio

25.81%

Dividend Payout Ratio

27.44%

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

3.04

EV to EBIT

11.60

EV to EBITDA

8.63

EV to Capital Employed

3.47

EV to Sales

1.57

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

29.87%

ROE (Latest)

18.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.24% (YoY

OPERATING PROFIT(Q)

Highest at JPY 1,798.56 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,406.34 MM

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 65,402.18

DEBT-EQUITY RATIO (HY)

Highest at -9.91 %

INTEREST(Q)

Highest at JPY 2.75 MM

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

Operating Profit

Highest at JPY 1,798.56 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 1,406.34 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -1.24% (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

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

Interest Coverage Ratio

Lowest at 65,402.18 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 2.75 MM has Grown at 29.78%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 2.75 MM

in the last five periods and Increased by 29.78% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -9.91 %

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