Kawase Computer Supplies Co., Ltd. (7851) 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

Forside Co., Ltd.

Chuokeizai-Sha Holdings, Inc.

Townnews-Sha Co., Ltd.

KG Intelligence Co., Ltd.

Printnet, Inc.

Kawase Computer Supplies Co., Ltd.

SE Holdings & Incubations Co., Ltd.

Impress Holdings, Inc.

Success Holders, Inc.

Shobunsha Holdings, Inc.

Seki Co., Ltd.

Why is Kawase Computer Supplies Co., Ltd. ?

Poor Management Efficiency with a low ROE of 1.34%

The company has been able to generate a Return on Equity (avg) of 1.34% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.48% and Operating profit at 20.65% over the last 5 years

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

ROCE(HY) Highest at 3.7%
PRE-TAX PROFIT(Q) At JPY 53.06 MM has Grown at 114.94%
NET PROFIT(Q) At JPY 50.8 MM has Grown at 119.94%

With ROE of 3.87%, it has a very attractive valuation with a 0.53 Price to Book Value

Over the past year, while the stock has generated a return of 11.16%, its profits have risen by 426% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

The stock has generated a return of 11.16% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kawase Computer Supplies 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 Kawase Computer Supplies Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kawase Computer Supplies Co., Ltd.

11.01%

0.33

32.21%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.48%

EBIT Growth (5y)

20.65%

EBIT to Interest (avg)

2.25

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.97

Tax Ratio

7.98%

Dividend Payout Ratio

23.31%

Pledged Shares

Institutional Holding

ROCE (avg)

2.45%

ROE (avg)

1.34%

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

0.53

EV to EBIT

7.11

EV to EBITDA

3.11

EV to Capital Employed

0.33

EV to Sales

0.20

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

4.68%

ROE (Latest)

3.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Bullish

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

ROCE(HY)

Highest at 3.7%

PRE-TAX PROFIT(Q)

At JPY 53.06 MM has Grown at 114.94%

NET PROFIT(Q)

At JPY 50.8 MM has Grown at 119.94%

NET SALES(Q)

Highest at JPY 761.96 MM

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.8% (YoY

CASH AND EQV(HY)

Lowest at JPY 2,208.97 MM

DEBT-EQUITY RATIO (HY)

Highest at -23.61 %

Here's what is working for Kawase Computer Supplies Co., Ltd.

Pre-Tax Profit

At JPY 53.06 MM has Grown at 114.94%

over average net sales of the previous four periods of JPY 24.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 50.8 MM has Grown at 119.94%

over average net sales of the previous four periods of JPY 23.1 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 761.96 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Here's what is not working for Kawase Computer Supplies Co., Ltd.

Cash and Eqv

Lowest at JPY 2,208.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -23.61 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 5.8% (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