ScoreWhy is Kao Corp. ?
1
Weak Long Term Fundamental Strength with a -0.21% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Net Sales has grown by an annual rate of 4.64% and Operating profit at -0.21% over the last 5 years
3
Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at JPY 211,860 MM
- ROCE(HY) Highest at 12.53%
- RAW MATERIAL COST(Y) Fallen by -5.51% (YoY)
4
With ROE of 12.02%, it has a attractive valuation with a 2.57 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 7.31%, its profits have risen by 7.5% ; the PEG ratio of the company is 2.1
- At the current price, the company has a high dividend yield of 0
5
Majority shareholders : Non Institution
6
Underperformed the market in the last 1 year
- The stock has generated a return of 7.31% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kao Corp. 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 Kao Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Kao Corp.
7.31%
81.36
57.36%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.64%
EBIT Growth (5y)
-0.21%
EBIT to Interest (avg)
39.48
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.12
Sales to Capital Employed (avg)
1.37
Tax Ratio
30.64%
Dividend Payout Ratio
59.16%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
14.52%
ROE (avg)
10.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
2.57
EV to EBIT
15.99
EV to EBITDA
10.48
EV to Capital Employed
2.78
EV to Sales
1.54
PEG Ratio
2.06
Dividend Yield
0.02%
ROCE (Latest)
17.36%
ROE (Latest)
12.02%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 211,860 MM
ROCE(HY)
Highest at 12.53%
RAW MATERIAL COST(Y)
Fallen by -5.51% (YoY
CASH AND EQV(HY)
Highest at JPY 601,499 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 7.31 times
NET SALES(Q)
Highest at JPY 458,710 MM
OPERATING PROFIT(Q)
Highest at JPY 73,437 MM
OPERATING PROFIT MARGIN(Q)
Highest at 16.01 %
PRE-TAX PROFIT(Q)
Highest at JPY 50,850 MM
-10What is not working for the Company
INTEREST(HY)
At JPY 2,869 MM has Grown at 183.5%
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
DIVIDEND PER SHARE(HY)
Lowest at JPY 7.31
Here's what is working for Kao Corp.
Operating Cash Flow
Highest at JPY 211,860 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Sales
Highest at JPY 458,710 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 73,437 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 16.01 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 50,850 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Cash and Eqv
Highest at JPY 601,499 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 7.31 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -5.51% (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 22,464 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Kao Corp.
Interest
At JPY 2,869 MM has Grown at 183.5%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Dividend per share
Lowest at JPY 7.31
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (JPY)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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