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
Positive results in Mar 26
- NET PROFIT(HY) Higher at JPY 6,665 MM
- ROCE(HY) Highest at 10.4%
- DEBTORS TURNOVER RATIO(HY) Highest at 3.07 times
4
With ROCE of -2.32%, it has a very attractive valuation with a 0.64 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 -3.54%, 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.
-3.54%
-0.19
34.05%
Japan Nikkei 225
75.22%
2.67
28.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.79%
EBIT Growth (5y)
2.92%
EBIT to Interest (avg)
-4.17
Debt to EBITDA (avg)
77.18
Net Debt to Equity (avg)
0.66
Sales to Capital Employed (avg)
0.67
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
4
Industry P/E
Price to Book Value
0.42
EV to EBIT
-27.52
EV to EBITDA
-14860.60
EV to Capital Employed
0.64
EV to Sales
0.83
PEG Ratio
0.02
Dividend Yield
NA
ROCE (Latest)
-2.32%
ROE (Latest)
10.19%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
NET PROFIT(HY)
Higher at JPY 6,665 MM
ROCE(HY)
Highest at 10.4%
DEBTORS TURNOVER RATIO(HY)
Highest at 3.07 times
NET SALES(Q)
Highest at JPY 19,034 MM
-13What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 68.61 %
RAW MATERIAL COST(Y)
Grown by 26.91% (YoY
INTEREST(Q)
Highest at JPY 176 MM
Here's what is working for KATO WORKS CO., LTD.
Net Profit
At JPY 6,665 MM has Grown at 737.19%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (JPY MM)
Net Profit
Higher at JPY 6,665 MM
than preceding 12 month period ended Mar 2026MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Net Sales
Highest at JPY 19,034 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 19,034 MM has Grown at 18.1%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Debtors Turnover Ratio
Highest at 3.07 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at JPY 489 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.
Interest
At JPY 176 MM has Grown at 11.39%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 68.61 % 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 176 MM
in the last five periods and Increased by 11.39% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Raw Material Cost
Grown by 26.91% (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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