Kawanishi Warehouse Co., Ltd. (9322) 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

AIT Corp.

AJIS Co., Ltd.

Isewan Terminal Service Co., Ltd.

Nippon Concept Corp.

Japan Transcity Corp.

Chuo Warehouse Co., Ltd.

Kawanishi Warehouse Co., Ltd.

Japan Oil Transportation Co., Ltd.

Sugimura Warehouse Co., Ltd.

Nissin Corp.

DEMAE-CAN CO., LTD.

Why is Kawanishi Warehouse Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.64%

The company has been able to generate a Return on Capital Employed (avg) of 3.64% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 2.72% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 71.26 MM has Grown at 184.58%
ROCE(HY) Lowest at 2.93%
EPS(Q) Lowest at JPY 16.96

With ROCE of 3.90%, it has a very expensive valuation with a 1.08 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 96.89%, its profits have fallen by -16.9%

Market Beating Performance

The stock has generated a return of 96.89% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kawanishi Warehouse Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is Kawanishi Warehouse Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Kawanishi Warehouse Co., Ltd.

96.89%

2.11

41.98%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.72%

EBIT Growth (5y)

14.22%

EBIT to Interest (avg)

16.68

Debt to EBITDA (avg)

2.29

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.86

Tax Ratio

37.70%

Dividend Payout Ratio

28.68%

Pledged Shares

Institutional Holding

ROCE (avg)

3.64%

ROE (avg)

3.26%

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

1.09

EV to EBIT

27.57

EV to EBITDA

11.62

EV to Capital Employed

1.08

EV to Sales

1.04

PEG Ratio

Dividend Yield

ROCE (Latest)

3.90%

ROE (Latest)

2.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 6.86

DIVIDEND PAYOUT RATIO(Y)

Highest at 677.87%

RAW MATERIAL COST(Y)

Fallen by -15% (YoY

NET SALES(Q)

Highest at JPY 6,643.79 MM

OPERATING PROFIT(Q)

Highest at JPY 673.29 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.13 %

-11What is not working for the Company

INTEREST(HY)

At JPY 71.26 MM has Grown at 184.58%

ROCE(HY)

Lowest at 2.93%

EPS(Q)

Lowest at JPY 16.96

Here's what is working for Kawanishi Warehouse Co., Ltd.

Dividend per share

Highest at JPY 6.86 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 6,643.79 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 673.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 10.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend Payout Ratio

Highest at 677.87%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -15% (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 381.08 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 Kawanishi Warehouse Co., Ltd.

Interest

At JPY 71.26 MM has Grown at 184.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY 16.96

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)