Kawakami Paint Manufacturing Co., Ltd. (4616) 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

Atomix Co., Ltd.

POVAL Kogyo Co., Ltd.

Kikusui Chemical Industries Co., Ltd.

Fuji Glass Co., Ltd.

Riken Corundum Co., Ltd.

Asahi Rubber, Inc.

Takagi Seiko Corp.

Kawakami Paint Manufacturing Co., Ltd.

Toyo Drilube Co., Ltd.

Shinto Paint Co., Ltd.

Okamoto Glass Co., Ltd.

Why is Kawakami Paint Manufacturing Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.51%

The company has been able to generate a Return on Equity (avg) of 4.51% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.69% and Operating profit at -29.79% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

PRE-TAX PROFIT(Q) At JPY 0.3 MM has Fallen at -99.09%
NET PROFIT(Q) At JPY 3.49 MM has Fallen at -85.86%
ROCE(HY) Lowest at 3.14%

With ROE of 3.83%, it has a very attractive valuation with a 0.52 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 21.74%, its profits have fallen by -40.8%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kawakami Paint Manufacturing Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kawakami Paint Manufacturing Co., Ltd.

21.74%

0.36

29.74%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.69%

EBIT Growth (5y)

-29.79%

EBIT to Interest (avg)

11.94

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

1.17

Tax Ratio

27.42%

Dividend Payout Ratio

17.51%

Pledged Shares

Institutional Holding

ROCE (avg)

3.60%

ROE (avg)

4.51%

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

0.52

EV to EBIT

74.33

EV to EBITDA

11.97

EV to Capital Employed

0.55

EV to Sales

0.32

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

0.74%

ROE (Latest)

3.83%

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

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.97%

-26What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 0.3 MM has Fallen at -99.09%

NET PROFIT(Q)

At JPY 3.49 MM has Fallen at -85.86%

ROCE(HY)

Lowest at 3.14%

RAW MATERIAL COST(Y)

Grown by 31.78% (YoY

INTEREST(Q)

Highest at JPY 5.12 MM

Here's what is working for Kawakami Paint Manufacturing Co., Ltd.

Inventory Turnover Ratio

Highest at 3.97%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 39.67 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Kawakami Paint Manufacturing Co., Ltd.

Pre-Tax Profit

At JPY 0.3 MM has Fallen at -99.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 3.49 MM has Fallen at -85.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 5.12 MM has Grown at 30.78%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 5.12 MM

in the last five periods and Increased by 30.78% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 31.78% (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

Non Operating Income

Highest at JPY 47.7 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income