ScoreWhy is KATO WORKS CO., LTD. ?
1
Poor Management Efficiency with a low ROCE of 1.27%
- The company has been able to generate a Return on Capital Employed (avg) of 1.27% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -2.79% and Operating profit at 2.92% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 3.14% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -2.79% and Operating profit at 2.92% over the last 5 years
4
Flat results in Jun 26
- CASH AND EQV(HY) Lowest at JPY 21,260 MM
- DEBT-EQUITY RATIO (HY) Highest at 69.13 %
- NET SALES(Q) Lowest at JPY 10,023 MM
5
With ROCE of -2.32%, it has a very attractive valuation with a 0.59 Enterprise value to Capital Employed
- 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 -6.14%, its profits have risen by 264.3% ; the PEG ratio of the company is 0
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to KATO WORKS CO., LTD. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is KATO WORKS CO., LTD. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
KATO WORKS CO., LTD.
-6.14%
0.04
33.12%
Japan Nikkei 225
60.14%
2.05
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.79%
EBIT Growth (5y)
2.92%
EBIT to Interest (avg)
-3.10
Debt to EBITDA (avg)
7.18
Net Debt to Equity (avg)
0.66
Sales to Capital Employed (avg)
0.66
Tax Ratio
4.28%
Dividend Payout Ratio
17.56%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.27%
ROE (avg)
3.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
3
Industry P/E
Price to Book Value
0.34
EV to EBIT
-25.28
EV to EBITDA
-13651.01
EV to Capital Employed
0.59
EV to Sales
0.77
PEG Ratio
0.01
Dividend Yield
NA
ROCE (Latest)
-2.32%
ROE (Latest)
10.19%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
ROCE(HY)
Highest at 11.81%
RAW MATERIAL COST(Y)
Fallen by -60.73% (YoY
OPERATING PROFIT(Q)
Highest at JPY 417 MM
OPERATING PROFIT MARGIN(Q)
Highest at 4.16 %
PRE-TAX PROFIT(Q)
At JPY 7 MM has Grown at 101.49%
NET PROFIT(Q)
At JPY -17 MM has Grown at 96.65%
-13What is not working for the Company
CASH AND EQV(HY)
Lowest at JPY 21,260 MM
DEBT-EQUITY RATIO
(HY)
Highest at 69.13 %
NET SALES(Q)
Lowest at JPY 10,023 MM
INTEREST(Q)
Highest at JPY 187 MM
Here's what is working for KATO WORKS CO., LTD.
Operating Profit
Highest at JPY 417 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 4.16 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
At JPY 7 MM has Grown at 101.49%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -17 MM has Grown at 96.65%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Raw Material Cost
Fallen by -60.73% (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 WORKS CO., LTD.
Net Sales
At JPY 10,023 MM has Fallen at -19.36%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Net Sales
Lowest at JPY 10,023 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 187 MM
in the last five periods and Increased by 6.25% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 21,260 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 69.13 %
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 23.57 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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