ScoreWhy is Kao Corp. ?
1
High Management Efficiency with a high ROE of 10.62%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 38.58
3
Poor long term growth as Net Sales has grown by an annual rate of 2.05% and Operating profit at -6.72% over the last 5 years
4
Positive results in Dec 25
- ROCE(HY) Highest at 11.27%
- DIVIDEND PER SHARE(HY) Highest at JPY 6.83
- RAW MATERIAL COST(Y) Fallen by -0.44% (YoY)
5
With ROE of 11.66%, it has a very attractive valuation with a 3.01 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 -8.21%, its profits have risen by 38.7% ; the PEG ratio of the company is 0.7
- At the current price, the company has a high dividend yield of 0
6
Majority shareholders : Non Institution
7
Below par performance in long term as well as near term
- Along with generating -8.21% 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 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?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Kao Corp.
-8.21%
365.47
21.25%
Japan Nikkei 225
40.96%
1.35
28.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.05%
EBIT Growth (5y)
-6.72%
EBIT to Interest (avg)
38.58
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.12
Sales to Capital Employed (avg)
1.36
Tax Ratio
27.05%
Dividend Payout Ratio
65.53%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
15.33%
ROE (avg)
10.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
3.01
EV to EBIT
19.96
EV to EBITDA
12.56
EV to Capital Employed
3.30
EV to Sales
1.80
PEG Ratio
0.67
Dividend Yield
0.01%
ROCE (Latest)
16.52%
ROE (Latest)
11.66%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
ROCE(HY)
Highest at 11.27%
DIVIDEND PER SHARE(HY)
Highest at JPY 6.83
RAW MATERIAL COST(Y)
Fallen by -0.44% (YoY
NET SALES(Q)
Highest at JPY 456,599 MM
OPERATING PROFIT(Q)
Highest at JPY 70,881 MM
PRE-TAX PROFIT(Q)
Highest at JPY 49,835 MM
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at JPY 199,680 MM
INTEREST(Q)
At JPY 1,196 MM has Grown at 42.55%
Here's what is working for Kao Corp.
Dividend per share
Highest at JPY 6.83 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Net Sales
Highest at JPY 456,599 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 70,881 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 49,835 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Raw Material Cost
Fallen by -0.44% (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 Kao Corp.
Operating Cash Flow
Lowest at JPY 199,680 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Interest
At JPY 1,196 MM has Grown at 42.55%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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