Kawasaki & Co., Ltd. (3045) 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

Will Co., Ltd.

INTELLEX Co., Ltd.

Kawasaki & Co., Ltd.

Koryojyuhan Co., Ltd.

Sunwood Corp.

HORAI Co., Ltd.

Central General Development Co., Ltd.

Tokai Lease Co., Ltd.

Properst Co., Ltd.

LeTech Corp.

S Trust Co., Ltd.

Why is Kawasaki & Co., Ltd. ?

Poor Management Efficiency with a low ROE of 7.90%

The company has been able to generate a Return on Equity (avg) of 7.90% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 31.68% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 7.90% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.50% and Operating profit at 31.68% over the last 5 years

Flat results in May 26

INTEREST COVERAGE RATIO(Q) Lowest at 11,897.17
INTEREST(Q) Highest at JPY 1.73 MM

With ROE of 5.75%, it has a very attractive valuation with a 0.73 Price to Book Value

Over the past year, while the stock has generated a return of -2.05%, its profits have risen by 15% ; the PEG ratio of the company is 0.8

Below par performance in long term as well as near term

Along with generating -2.05% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kawasaki & Co., Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Kawasaki & Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kawasaki & Co., Ltd.

-2.05%

0.74

15.51%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.50%

EBIT Growth (5y)

31.68%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

34.30%

Dividend Payout Ratio

31.73%

Pledged Shares

Institutional Holding

ROCE (avg)

6.03%

ROE (avg)

7.90%

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

0.73

EV to EBIT

8.71

EV to EBITDA

5.48

EV to Capital Employed

0.74

EV to Sales

1.96

PEG Ratio

0.83

Dividend Yield

ROCE (Latest)

8.45%

ROE (Latest)

5.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 2.56 %

CASH AND EQV(HY)

Highest at JPY 1,338.65 MM

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 11,897.17

INTEREST(Q)

Highest at JPY 1.73 MM

Here's what is working for Kawasaki & Co., Ltd.

Debt-Equity Ratio

Lowest at 2.56 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 1,338.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Kawasaki & Co., Ltd.

Interest

At JPY 1.73 MM has Grown at 30.2%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 11,897.17

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 1.73 MM

in the last five periods and Increased by 30.2% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)