ScoreWhy is Kato Sangyo Co., Ltd. ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- Healthy long term growth as Operating profit has grown by an annual rate 9.34%
- 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)
2
Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at JPY 19,239 MM
- ROCE(HY) Highest at 9.87%
- RAW MATERIAL COST(Y) Fallen by 0.96% (YoY)
3
With ROE of 9.07%, it has a fair valuation with a 1.16 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 12.22%, its profits have risen by 1.2% ; the PEG ratio of the company is 10.6
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow 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, Medium Return
Absolute
Risk Adjusted
Volatility
Kato Sangyo Co., Ltd.
12.22%
2.77
20.87%
Japan Nikkei 225
60.14%
2.05
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.88%
EBIT Growth (5y)
9.34%
EBIT to Interest (avg)
77.76
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
7.07
Tax Ratio
31.37%
Dividend Payout Ratio
32.89%
Pledged Shares
0
Institutional Holding
1.00%
ROCE (avg)
19.45%
ROE (avg)
8.67%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.16
EV to EBIT
7.75
EV to EBITDA
5.72
EV to Capital Employed
1.25
EV to Sales
0.12
PEG Ratio
10.57
Dividend Yield
NA
ROCE (Latest)
16.16%
ROE (Latest)
9.07%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 19,239 MM
ROCE(HY)
Highest at 9.87%
RAW MATERIAL COST(Y)
Fallen by 0.96% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 7.08 times
NET PROFIT(Q)
Highest at JPY 4,730.53 MM
EPS(Q)
Highest at JPY 157.08
-2What is not working for the Company
CASH AND EQV(HY)
Lowest at JPY 141,233 MM
DEBT-EQUITY RATIO
(HY)
Highest at -34.52 %
Here's what is working for Kato Sangyo Co., Ltd.
Operating Cash Flow
Highest at JPY 19,239 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Profit
Highest at JPY 4,730.53 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 157.08
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Highest at 7.08 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 0.96% (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 Kato Sangyo Co., Ltd.
Cash and Eqv
Lowest at JPY 141,233 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at -34.52 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income
Highest at JPY 0.44 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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