Keiyo Gas Co., Ltd. (9539) 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

Gun Ei Chemical Industry Co., Ltd.

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Dainichiseika Color & Chemicals Mfg. Co., Ltd.

Koatsu Gas Kogyo Co., Ltd.

Okura Industrial Co., Ltd.

Stella Chemifa Corp.

Keiyo Gas Co., Ltd.

Tayca Corp.

Tanaka Chemical Corp.

Why is Keiyo Gas Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.50%

The company has been able to generate a Return on Capital Employed (avg) of 2.50% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate -11.82% of over the last 5 years

NET PROFIT(HY) At JPY -413 MM has Grown at -54.1%
INTEREST(HY) At JPY 148 MM has Grown at 16.54%
DEBT-EQUITY RATIO (HY) Highest at 9.34 %

With ROCE of 3.33%, it has a very attractive valuation with a 0.48 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 26.03%, its profits have risen by 1106.8% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 26.03% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

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 Specialty Chemicals)

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

Is Keiyo Gas Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Keiyo Gas Co., Ltd.

-100.0%

1.47

31.42%

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)

4.50%

EBIT Growth (5y)

-11.82%

EBIT to Interest (avg)

16.72

Debt to EBITDA (avg)

0.61

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.97

Tax Ratio

23.32%

Dividend Payout Ratio

42.93%

Pledged Shares

Institutional Holding

ROCE (avg)

2.50%

ROE (avg)

2.41%

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

0.43

EV to EBIT

14.41

EV to EBITDA

3.60

EV to Capital Employed

0.48

EV to Sales

0.43

PEG Ratio

0.03

Dividend Yield

0.01%

ROCE (Latest)

3.33%

ROE (Latest)

3.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

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 -4.93% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 9.71

-13What is not working for the Company

NET PROFIT(HY)

At JPY -413 MM has Grown at -54.1%

INTEREST(HY)

At JPY 148 MM has Grown at 16.54%

DEBT-EQUITY RATIO (HY)

Highest at 9.34 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 37.89 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.71 times

EPS(Q)

Lowest at JPY -10.23

Here's what is working for Keiyo Gas Co., Ltd.

Dividend per share

Highest at JPY 9.71

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -4.93% (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 2,709 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 Keiyo Gas Co., Ltd.

Net Profit

At JPY -413 MM has Grown at -54.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 148 MM has Grown at 16.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -10.23

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 9.34 %

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

Inventory Turnover Ratio

Lowest at 37.89 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 9.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio