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 4.09% and Operating profit at -1.39% over the last 5 years
4
Flat results in Mar 26
- INTEREST COVERAGE RATIO(Q) Lowest at 3,802.93
- INTEREST(Q) Highest at JPY 1,435 MM
- OPERATING PROFIT MARGIN(Q) Lowest at 13.21 %
5
With ROE of 11.33%, it has a fair valuation with a 2.68 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 -4.69%, its profits have risen by 5.6% ; the PEG ratio of the company is 4.3
- 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 -4.69% 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.
-4.69%
440.87
18.24%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.09%
EBIT Growth (5y)
-1.39%
EBIT to Interest (avg)
38.58
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.12
Sales to Capital Employed (avg)
1.37
Tax Ratio
27.05%
Dividend Payout Ratio
59.16%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
15.33%
ROE (avg)
10.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
2.68
EV to EBIT
16.43
EV to EBITDA
10.76
EV to Capital Employed
3.00
EV to Sales
1.59
PEG Ratio
4.26
Dividend Yield
0.02%
ROCE (Latest)
18.25%
ROE (Latest)
11.33%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 203,075 MM
ROCE(HY)
Highest at 12.21%
RAW MATERIAL COST(Y)
Fallen by -1.22% (YoY
-12What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 3,802.93
INTEREST(Q)
Highest at JPY 1,435 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 13.21 %
Here's what is working for Kao Corp.
Operating Cash Flow
Highest at JPY 203,075 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Raw Material Cost
Fallen by -1.22% (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 22,307 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 1,435 MM has Grown at 19.98%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 3,802.93
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 1,435 MM
in the last five periods and Increased by 19.98% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 13.21 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Non Operating Income
Highest at JPY 0.31 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
