Kato Sangyo Co., Ltd. (9869) 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

OIE SANGYO Co., Ltd.

Mitsubishi Shokuhin Co., Ltd.

Kato Sangyo Co., Ltd.

ITOCHU Corp.

Itochu-Shokuhin Co., Ltd.

Lacto Japan Co., Ltd.

Premium Water Holdings, Inc.

Yamatane Corp.

S Foods, Inc.

Nishimoto Co., Ltd. /Chuo-Ku/

Tohto Suisan Co., Ltd.

Why is Kato Sangyo Co., Ltd. ?

Low Debt Company with Strong Long Term Fundamental Strength

Healthy long term growth as Operating profit has grown by an annual rate 10.37%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 85.86
The company has been able to generate a Return on Capital Employed (avg) of 20.52% signifying high profitability per unit of total capital (equity and debt)

With a growth in Operating Profit of 6.38%, the company declared Very Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at JPY 20,848 MM
DIVIDEND PER SHARE(HY) Highest at JPY 6.76
RAW MATERIAL COST(Y) Fallen by 0% (YoY)

With ROE of 8.39%, it has a fair valuation with a 1.30 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 8.61%, its profits have fallen by -9.9%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Kato Sangyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kato Sangyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kato Sangyo Co., Ltd.

8.61%

2.11

19.71%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.84%

EBIT Growth (5y)

10.37%

EBIT to Interest (avg)

85.86

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

7.07

Tax Ratio

33.81%

Dividend Payout Ratio

32.89%

Pledged Shares

Institutional Holding

1.00%

ROCE (avg)

20.52%

ROE (avg)

8.67%

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

1.30

EV to EBIT

8.44

EV to EBITDA

6.30

EV to Capital Employed

1.50

EV to Sales

0.13

PEG Ratio

Dividend Yield

ROCE (Latest)

17.82%

ROE (Latest)

8.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 20,848 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 6.76

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

PRE-TAX PROFIT(Q)

Highest at JPY 7,181 MM

NET PROFIT(Q)

Highest at JPY 4,487.78 MM

EPS(Q)

Highest at JPY 146.98

-3What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 143,792 MM

DEBT-EQUITY RATIO (HY)

Highest at -30.78 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 27.96 times

Here's what is working for Kato Sangyo Co., Ltd.

Operating Cash Flow

Highest at JPY 20,848 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Dividend per share

Highest at JPY 6.76 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Pre-Tax Profit

Highest at JPY 7,181 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 4,487.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 146.98

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by 0% (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 1,780 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Kato Sangyo Co., Ltd.

Cash and Eqv

Lowest at JPY 143,792 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -30.78 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 27.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.34 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income