ScoreWhy is Kawai Musical Instrument Manufacturing Co., Ltd. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 47.50
2
Poor long term growth as Net Sales has grown by an annual rate of 2.08% over the last 5 years
3
Flat results in Mar 26
- DEBT-EQUITY RATIO (HY) Highest at 3.42 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 6.18 times
- CASH AND EQV(HY) Lowest at JPY 22,887 MM
4
With ROE of 2.49%, it has a fair valuation with a 0.57 Price to Book Value
- 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 26.72%, its profits have risen by 127.9% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 26.72% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kawai Musical Instrument Manufacturing Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Media & Entertainment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kawai Musical Instrument Manufacturing Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kawai Musical Instrument Manufacturing Co., Ltd.
26.72%
0.01
28.65%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.08%
EBIT Growth (5y)
-25.12%
EBIT to Interest (avg)
47.50
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.10
Sales to Capital Employed (avg)
1.49
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
201.70%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
15.57%
ROE (avg)
8.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
0.57
EV to EBIT
49.13
EV to EBITDA
9.69
EV to Capital Employed
0.55
EV to Sales
0.33
PEG Ratio
0.18
Dividend Yield
NA
ROCE (Latest)
1.12%
ROE (Latest)
2.49%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -3.29% (YoY
NET SALES(Q)
Highest at JPY 18,739 MM
PRE-TAX PROFIT(Q)
Highest at JPY 810 MM
NET PROFIT(Q)
Highest at JPY 684 MM
EPS(Q)
Highest at JPY 79.51
-16What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 3.42 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.18 times
CASH AND EQV(HY)
Lowest at JPY 22,887 MM
INTEREST(Q)
Highest at JPY 43 MM
Here's what is working for Kawai Musical Instrument Manufacturing Co., Ltd.
Pre-Tax Profit
At JPY 810 MM has Grown at 124.38%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Sales
Highest at JPY 18,739 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
Highest at JPY 810 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 684 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 79.51
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -3.29% (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
Depreciation
Highest at JPY 597 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 Kawai Musical Instrument Manufacturing Co., Ltd.
Interest
At JPY 43 MM has Grown at 16.22%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 3.42 % 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
Debtors Turnover Ratio
Lowest at 6.18 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
Highest at JPY 43 MM
in the last five periods and Increased by 16.22% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 22,887 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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