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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Kawase Computer Supplies 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

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 2.25

Poor long term growth as Net Sales has grown by an annual rate of 1.19% and Operating profit at 49.02% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 2.25
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 1.19% and Operating profit at 49.02% over the last 5 years

Negative results in Mar 26

CASH AND EQV(HY) Lowest at JPY 2,140.24 MM
OPERATING PROFIT MARGIN(Q) Lowest at 3.72 %
PRE-TAX PROFIT(Q) Lowest at JPY 0.77 MM

With ROE of 2.70%, it has a attractive valuation with a 0.36 Price to Book Value

Over the past year, while the stock has generated a return of -29.06%, its profits have fallen by -0.6%

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 Media & Entertainment)

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

Is Kawase Computer Supplies Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kawase Computer Supplies Co., Ltd.

-28.52%

-0.51

32.16%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.19%

EBIT Growth (5y)

49.02%

EBIT to Interest (avg)

2.51

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

1.00

Tax Ratio

11.91%

Dividend Payout Ratio

20.90%

Pledged Shares

Institutional Holding

ROCE (avg)

2.38%

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

0.36

EV to EBIT

3.02

EV to EBITDA

1.03

EV to Capital Employed

0.09

EV to Sales

0.06

PEG Ratio

Dividend Yield

ROCE (Latest)

3.10%

ROE (Latest)

2.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 938.09%

RAW MATERIAL COST(Y)

Fallen by -2.31% (YoY

-19What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 2,140.24 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.72 %

PRE-TAX PROFIT(Q)

Lowest at JPY 0.77 MM

NET PROFIT(Q)

Lowest at JPY 0.3 MM

EPS(Q)

Lowest at JPY 0.32

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

Dividend Payout Ratio

Highest at 938.09%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.31% (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 27.88 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 Kawase Computer Supplies Co., Ltd.

Pre-Tax Profit

At JPY 0.77 MM has Fallen at -95.8%

over average net sales of the previous four periods of JPY 18.23 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 0.3 MM has Fallen at -98.17%

over average net sales of the previous four periods of JPY 16.57 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit Margin

Lowest at 3.72 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 0.77 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 0.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 0.32

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 2,140.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents