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.

Tomoe Engineering Co., Ltd.

Sakai Chemical Industry Co., Ltd.

Okura Industrial Co., Ltd.

Ise Chemicals Corp.

Dainichiseika Color & Chemicals Mfg. Co., Ltd.

Keiyo Gas Co., Ltd.

Stella Chemifa Corp.

Koatsu Gas Kogyo 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)

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 16.72

Poor long term growth as Operating profit has grown by an annual rate -9.56% of over the last 5 years

Flat results in Mar 26

INVENTORY TURNOVER RATIO(HY) Lowest at 40.89 times
INTEREST(Q) Highest at JPY 112 MM

With ROCE of 3.47%, it has a fair valuation with a 0.50 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 13.54%, its profits have risen by 95.3%

Underperformed the market in the last 1 year

The stock has generated a return of 13.54% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Keiyo Gas Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Keiyo Gas Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Keiyo Gas Co., Ltd.

10.11%

2.14

23.71%

Japan Nikkei 225

69.64%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.82%

EBIT Growth (5y)

-9.56%

EBIT to Interest (avg)

16.72

Debt to EBITDA (avg)

0.61

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.94

Tax Ratio

23.32%

Dividend Payout Ratio

26.04%

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

0.45

EV to EBIT

14.28

EV to EBITDA

3.83

EV to Capital Employed

0.50

EV to Sales

0.47

PEG Ratio

Dividend Yield

ROCE (Latest)

3.47%

ROE (Latest)

3.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

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

10What is working for the Company

ROCE(HY)

Highest at 4.07%

RAW MATERIAL COST(Y)

Fallen by -8.97% (YoY

NET SALES(Q)

Highest at JPY 37,742 MM

OPERATING PROFIT(Q)

Highest at JPY 6,221 MM

PRE-TAX PROFIT(Q)

Highest at JPY 3,954 MM

NET PROFIT(Q)

Highest at JPY 2,751 MM

EPS(Q)

Highest at JPY 85.53

-13What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 40.89 times

INTEREST(Q)

Highest at JPY 112 MM

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

Net Sales

Highest at JPY 37,742 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 6,221 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 3,954 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 2,751 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 85.53

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -8.97% (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

Here's what is not working for Keiyo Gas Co., Ltd.

Interest

At JPY 112 MM has Grown at 49.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 40.89 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 112 MM

in the last five periods and Increased by 49.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)