Kawaguchi Chemical Industry Co., Ltd. (4361) 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

Hatsuho Shouji Co., Ltd.

Nippon Pigment Co., Ltd.

Daishin Chemical Co., Ltd.

Kawaguchi Chemical Industry Co., Ltd.

Maruo Calcium Co., Ltd.

NIX, Inc.

Somar Corp.

REFINVERSE Group, Inc.

Nippon Seiro Co., Ltd.

Titan Kogyo, Ltd.

Sugai Chemical Industry Co., Ltd.

Why is Kawaguchi Chemical Industry Co., Ltd. ?

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 3.70% and Operating profit at 12.97% over the last 5 years
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 3.70% and Operating profit at 12.97% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

DEBTORS TURNOVER RATIO(HY) Lowest at 2.65 times
INTEREST(Q) Highest at JPY 10.64 MM

With ROCE of 7.72%, it has a very attractive valuation with a 0.76 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 9.99%, its profits have risen by 29.2% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 9.99% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kawaguchi Chemical Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Kawaguchi Chemical Industry Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kawaguchi Chemical Industry Co., Ltd.

-100.0%

0.23

42.03%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.70%

EBIT Growth (5y)

12.97%

EBIT to Interest (avg)

16.40

Debt to EBITDA (avg)

2.97

Net Debt to Equity (avg)

0.78

Sales to Capital Employed (avg)

1.44

Tax Ratio

23.50%

Dividend Payout Ratio

24.48%

Pledged Shares

Institutional Holding

ROCE (avg)

6.88%

ROE (avg)

9.14%

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

0.57

EV to EBIT

9.81

EV to EBITDA

4.83

EV to Capital Employed

0.76

EV to Sales

0.43

PEG Ratio

0.16

Dividend Yield

0.07%

ROCE (Latest)

7.72%

ROE (Latest)

11.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.28% (YoY

OPERATING PROFIT(Q)

Highest at JPY 320.83 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.05 %

PRE-TAX PROFIT(Q)

Highest at JPY 204.86 MM

NET PROFIT(Q)

Highest at JPY 151.93 MM

EPS(Q)

Highest at JPY 124.8

-10What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.65 times

INTEREST(Q)

Highest at JPY 10.64 MM

Here's what is working for Kawaguchi Chemical Industry Co., Ltd.

Operating Profit

Highest at JPY 320.83 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.05 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 204.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 204.86 MM has Grown at 83.04%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 151.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 151.93 MM has Grown at 67.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 124.8

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -11.28% (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 Kawaguchi Chemical Industry Co., Ltd.

Interest

Highest at JPY 10.64 MM

in the last five periods and Increased by 5.64% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 2.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio