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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Daishin Chemical Co., Ltd.

Hatsuho Shouji Co., Ltd.

Kawaguchi Chemical Industry Co., Ltd.

Somar Corp.

Maruo Calcium Co., Ltd.

Nippon Pigment Co., Ltd.

NIX, Inc.

Sugai Chemical Industry Co., Ltd.

Nippon Seiro Co., Ltd.

Titan Kogyo, Ltd.

REFINVERSE Group, Inc.

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

INTEREST COVERAGE RATIO(Q) Lowest at 2,293.28
INTEREST(Q) Highest at JPY 9.14 MM
PRE-TAX PROFIT(Q) Fallen at -42.54%

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 17.87%, 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 17.87% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.59%

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%

0.40

40.68%

Japan Nikkei 225

38.59%

1.45

26.59%

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

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 2,481.73 MM

DEBT-EQUITY RATIO (HY)

Lowest at 70.1 %

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,293.28

INTEREST(Q)

Highest at JPY 9.14 MM

PRE-TAX PROFIT(Q)

Fallen at -42.54%

NET PROFIT(Q)

Fallen at -45.75%

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

Cash and Eqv

Highest at JPY 2,481.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 70.1 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Kawaguchi Chemical Industry Co., Ltd.

Interest

At JPY 9.14 MM has Grown at 15.89%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,293.28

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 9.14 MM

in the last five periods and Increased by 15.89% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -42.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -45.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)