Keisei Electric Railway Co., Ltd. (9009) 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

West Japan Railway Co.

Tobu Railway Co., Ltd.

Odakyu Electric Railway Co., Ltd.

Kyushu Railway Co.

Keihan Holdings Co., Ltd.

Kobe Electric Railway Co. Ltd.

East Japan Railway Co.

Chichibu Railway Co., Ltd.

Keisei Electric Railway Co., Ltd.

Keikyu Corp.

Why is Keisei Electric Railway Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.89%

The company has been able to generate a Return on Capital Employed (avg) of 1.89% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.05% and Operating profit at 4.92% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 1.89% 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 3.05% and Operating profit at 4.92% over the last 5 years

INTEREST(HY) At JPY 1,682 MM has Grown at 24.59%
PRE-TAX PROFIT(Q) At JPY 20,274 MM has Fallen at -72.7%
ROCE(HY) Lowest at 9.71%

With ROCE of 4.70%, it has a expensive valuation with a 1.29 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 -20.39%, its profits have fallen by -8.7%
At the current price, the company has a high dividend yield of 0

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 Construction)

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

Is Keisei Electric Railway Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Keisei Electric Railway Co., Ltd.

-20.39%

-1.11

30.20%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.05%

EBIT Growth (5y)

4.92%

EBIT to Interest (avg)

3.63

Debt to EBITDA (avg)

11.39

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.37

Tax Ratio

28.47%

Dividend Payout Ratio

11.15%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

1.85%

ROE (avg)

8.26%

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

1.44

EV to EBIT

27.46

EV to EBITDA

14.41

EV to Capital Employed

1.29

EV to Sales

3.10

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

4.70%

ROE (Latest)

16.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by 1.73% (YoY

OPERATING PROFIT(Q)

Highest at JPY 19,349 MM

-23What is not working for the Company

INTEREST(HY)

At JPY 1,682 MM has Grown at 24.59%

PRE-TAX PROFIT(Q)

At JPY 20,274 MM has Fallen at -72.7%

ROCE(HY)

Lowest at 9.71%

NET PROFIT(Q)

At JPY 16,935.7 MM has Fallen at -64%

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.11 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.28 times

Here's what is working for Keisei Electric Railway Co., Ltd.

Operating Profit

Highest at JPY 19,349 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Raw Material Cost

Fallen by 1.73% (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 8,616 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 Keisei Electric Railway Co., Ltd.

Interest

At JPY 1,682 MM has Grown at 24.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 20,274 MM has Fallen at -72.7%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 16,935.7 MM has Fallen at -64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 11.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 10.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio