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.

Kansai Paint Co., Ltd.

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Aica Kogyo Co., Ltd.

ZEON Corp.

Nihon Parkerizing Co., Ltd.

Fujimi, Inc.

KeePer Technical Laboratory Co., Ltd.

LINTEC Corp.

artience Co. Ltd.

Sekisui Chemical Co., Ltd.

Why is Kansai Paint Co., Ltd. ?

Weak Long Term Fundamental Strength with a 13.05% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 13.05% of over the last 5 years

Flat results in Jun 26

NET PROFIT(HY) At JPY 8,612.44 MM has Grown at -40.58%
INTEREST(HY) At JPY 1,674 MM has Grown at 7.45%
ROCE(HY) Lowest at 10.61%

With ROCE of 13.25%, it has a very attractive valuation with a 1.44 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 32.40%, 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 32.40% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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.

36.47%

653.63

22.58%

Japan Nikkei 225

60.14%

2.04

29.37%

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)

19.92

Debt to EBITDA (avg)

0.68

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

1.21

Tax Ratio

39.31%

Dividend Payout Ratio

61.23%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

12.21%

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

1.60

EV to EBIT

10.87

EV to EBITDA

7.11

EV to Capital Employed

1.44

EV to Sales

0.96

PEG Ratio

Dividend Yield

ROCE (Latest)

13.25%

ROE (Latest)

14.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.61% (YoY

CASH AND EQV(HY)

Highest at JPY 252,968 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.69 times

NET SALES(Q)

Highest at JPY 157,853 MM

-11What is not working for the Company

NET PROFIT(HY)

At JPY 8,612.44 MM has Grown at -40.58%

INTEREST(HY)

At JPY 1,674 MM has Grown at 7.45%

ROCE(HY)

Lowest at 10.61%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.46 times

OPERATING PROFIT(Q)

Lowest at JPY 18,303 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.59 %

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

Net Sales

Highest at JPY 157,853 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 252,968 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.69 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.61% (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 Kansai Paint Co., Ltd.

Net Profit

At JPY 8,612.44 MM has Grown at -40.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Interest

At JPY 1,674 MM has Grown at 7.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 18,303 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 11.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio