Kappa Create Co., Ltd. (7421) 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

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Kappa Create Co., Ltd.

Why is Kappa Create Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.20%

The company has been able to generate a Return on Equity (avg) of 5.20% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -4.30

Poor long term growth as Net Sales has grown by an annual rate of 2.21% and Operating profit at 21.49% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -4.30
The company has been able to generate a Return on Equity (avg) of 5.20% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.21% and Operating profit at 21.49% over the last 5 years

The company has declared negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at -14.64%
INTEREST(Q) At JPY 51 MM has Grown at 21.43%
CASH AND EQV(HY) Lowest at JPY 12,202 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -1.74%, its profits have fallen by -39.6%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kappa Create Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kappa Create Co., Ltd.

-1.74%

-0.18

19.80%

Japan Nikkei 225

43.52%

1.48

29.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.21%

EBIT Growth (5y)

21.49%

EBIT to Interest (avg)

-0.53

Debt to EBITDA (avg)

1.33

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

3.85

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.49%

ROE (avg)

5.20%

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

6.37

EV to EBIT

62.75

EV to EBITDA

20.59

EV to Capital Employed

6.15

EV to Sales

0.96

PEG Ratio

Dividend Yield

ROCE (Latest)

9.81%

ROE (Latest)

7.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 24.15 times

-25What is not working for the Company

ROCE(HY)

Lowest at -14.64%

INTEREST(Q)

At JPY 51 MM has Grown at 21.43%

CASH AND EQV(HY)

Lowest at JPY 12,202 MM

NET SALES(Q)

Lowest at JPY 17,751 MM

OPERATING PROFIT(Q)

Lowest at JPY -125 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.7 %

PRE-TAX PROFIT(Q)

Lowest at JPY -682 MM

NET PROFIT(Q)

Lowest at JPY -705 MM

EPS(Q)

Lowest at JPY -15.5

Here's what is working for Kappa Create Co., Ltd.

Debtors Turnover Ratio

Highest at 24.15 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Kappa Create Co., Ltd.

Pre-Tax Profit

At JPY -682 MM has Fallen at -566.32%

over average net sales of the previous four periods of JPY 146.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -705 MM has Fallen at -978.5%

over average net sales of the previous four periods of JPY 80.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 51 MM has Grown at 21.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 17,751 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -125 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -0.7 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -682 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -705 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -15.5

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 12,202 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

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