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

Nippon Pigment Co., Ltd.

REFINVERSE Group, Inc.

Maruo Calcium Co., Ltd.

Hatsuho Shouji Co., Ltd.

NIX, Inc.

Kawaguchi Chemical Industry Co., Ltd.

Daishin Chemical Co., Ltd.

Somar Corp.

Titan Kogyo, Ltd.

Nippon Seiro Co., Ltd.

Sugai Chemical Industry Co., Ltd.

Why is Kawaguchi Chemical Industry Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 5.45% and Operating profit at 27.13% over the last 5 years
The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 5.45% and Operating profit at 27.13% over the last 5 years

Flat results in May 26

INTEREST(HY) At JPY 23.54 MM has Grown at 38.26%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.32 times

With ROCE of 8.12%, it has a very attractive valuation with a 0.74 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 6.83%, its profits have fallen by -9.3%
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 6.83% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kawaguchi Chemical Industry Co., Ltd.

7.81%

0.40

36.76%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.45%

EBIT Growth (5y)

27.13%

EBIT to Interest (avg)

15.77

Debt to EBITDA (avg)

2.62

Net Debt to Equity (avg)

0.70

Sales to Capital Employed (avg)

1.40

Tax Ratio

26.69%

Dividend Payout Ratio

24.48%

Pledged Shares

Institutional Holding

ROCE (avg)

7.89%

ROE (avg)

9.42%

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

0.55

EV to EBIT

9.11

EV to EBITDA

4.57

EV to Capital Employed

0.74

EV to Sales

0.46

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

8.12%

ROE (Latest)

9.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

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

11What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -15.88% (YoY

CASH AND EQV(HY)

Highest at JPY 3,355.1 MM

DEBT-EQUITY RATIO (HY)

Lowest at 41.87 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.43 times

OPERATING PROFIT(Q)

Highest at JPY 321.48 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.51 %

PRE-TAX PROFIT(Q)

At JPY 197.7 MM has Grown at 85.55%

NET PROFIT(Q)

At JPY 141.62 MM has Grown at 82.33%

-9What is not working for the Company

INTEREST(HY)

At JPY 23.54 MM has Grown at 38.26%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.32 times

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

Operating Profit

Highest at JPY 321.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.51 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 197.7 MM has Grown at 85.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 141.62 MM has Grown at 82.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 3,355.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 41.87 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.43 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -15.88% (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

At JPY 23.54 MM has Grown at 38.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio