Kansai Paint Co., Ltd. (4613) 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

Nippon Paint Holdings Co., Ltd.

ZEON Corp.

Kansai Paint Co., Ltd.

C. Uyemura & Co., Ltd.

Nihon Parkerizing Co., Ltd.

KeePer Technical Laboratory Co., Ltd.

Aica Kogyo Co., Ltd.

Sekisui Chemical Co., Ltd.

artience Co. Ltd.

LINTEC Corp.

Fujimi, Inc.

Why is Kansai Paint Co., Ltd. ?

High Management Efficiency with a high ROCE of 11.94%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.71

Flat results in Mar 26

ROCE(HY) Lowest at 11.11%
INTEREST(Q) At JPY 1,036 MM has Grown at 58.9%
INTEREST COVERAGE RATIO(Q) Lowest at 1,820.66

With ROCE of 13.25%, it has a very attractive valuation with a 1.41 Enterprise value to Capital Employed

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 32.89%, its profits have fallen by -24.7%
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 32.89% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kansai Paint Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Kansai Paint Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Kansai Paint Co., Ltd.

32.89%

621.30

21.54%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.23%

EBIT Growth (5y)

13.05%

EBIT to Interest (avg)

20.71

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

1.22

Tax Ratio

30.69%

Dividend Payout Ratio

24.75%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

11.94%

ROE (avg)

14.08%

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

1.56

EV to EBIT

10.65

EV to EBITDA

6.96

EV to Capital Employed

1.41

EV to Sales

0.94

PEG Ratio

Dividend Yield

ROCE (Latest)

13.25%

ROE (Latest)

14.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 583.63%

RAW MATERIAL COST(Y)

Fallen by -3.48% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 4.94

-12What is not working for the Company

ROCE(HY)

Lowest at 11.11%

INTEREST(Q)

At JPY 1,036 MM has Grown at 58.9%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,820.66

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.53 times

OPERATING PROFIT MARGIN(Q)

Lowest at 12.8 %

NET PROFIT(Q)

Lowest at JPY 2,123.26 MM

EPS(Q)

Lowest at JPY 7.69

Here's what is working for Kansai Paint Co., Ltd.

Dividend per share

Highest at JPY 4.94

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 583.63%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.48% (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 8,156 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 Kansai Paint Co., Ltd.

Interest

At JPY 1,036 MM has Grown at 58.9%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,820.66

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 2,123.26 MM has Fallen at -64.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit Margin

Lowest at 12.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 2,123.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 7.69

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 3.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio