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
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of -7.44% and Operating profit at 42.25% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 3.14% signifying low profitability per unit of shareholders funds
3
The company has declared Negative results for the last 4 consecutive quarters
- NET PROFIT(HY) At JPY -1,709 MM has Grown at -193.13%
- PRE-TAX PROFIT(Q) At JPY -471 MM has Fallen at -3,043.75%
- ROCE(HY) Lowest at -13.32%
4
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -10.16%, its profits have fallen by -222.3%
- At the current price, the company has a high dividend yield of 0
5
Below par performance in long term as well as near term
- Along with generating -10.16% 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 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 Automobiles)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is KATO WORKS CO., LTD. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
KATO WORKS CO., LTD.
-10.16%
-0.13
31.96%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-7.44%
EBIT Growth (5y)
42.25%
EBIT to Interest (avg)
-4.17
Debt to EBITDA (avg)
77.18
Net Debt to Equity (avg)
0.65
Sales to Capital Employed (avg)
0.69
Tax Ratio
9.02%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.27%
ROE (avg)
3.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.35
EV to EBIT
43.25
EV to EBITDA
18.70
EV to Capital Employed
0.60
EV to Sales
0.84
PEG Ratio
NA
Dividend Yield
0.04%
ROCE (Latest)
1.40%
ROE (Latest)
-13.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
NET PROFIT(9M)
Higher at JPY -1,553 MM
-31What is not working for the Company
NET PROFIT(HY)
At JPY -1,709 MM has Grown at -193.13%
PRE-TAX PROFIT(Q)
At JPY -471 MM has Fallen at -3,043.75%
ROCE(HY)
Lowest at -13.32%
DEBT-EQUITY RATIO
(HY)
Highest at 67.52 %
INTEREST(Q)
At JPY 172 MM has Grown at 15.44%
INTEREST COVERAGE RATIO(Q)
Lowest at 20.93
RAW MATERIAL COST(Y)
Grown by 38.19% (YoY
OPERATING PROFIT(Q)
Lowest at JPY 36 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 0.29 %
Here's what is working for KATO WORKS CO., LTD.
Net Profit
Higher at JPY -1,709 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Depreciation
Highest at JPY 387 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 KATO WORKS CO., LTD.
Net Profit
At JPY -1,709 MM has Grown at -193.13%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Pre-Tax Profit
At JPY -471 MM has Fallen at -3,043.75%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Interest
At JPY 172 MM has Grown at 15.44%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 20.93
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at 67.52 % and Grown
In each half year 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
Interest
Highest at JPY 172 MM
in the last five periods and Increased by 15.44% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 36 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 0.29 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 38.19% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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