Key Coffee, Inc. (2594) 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

WARABEYA NICHIYO HOLDINGS Co., Ltd.

Kotobuki Spirits Co., Ltd.

Riken Vitamin Co., Ltd.

Nitto Fuji Flour Milling Co., Ltd.

Kameda Seika Co., Ltd.

Fujicco Co., Ltd.

Bourbon Corp. (Japan)

Fujiya Co., Ltd.

Key Coffee, Inc.

Shoei Foods Corp.

Takasago International Corp.

Why is Key Coffee, Inc. ?

Poor Management Efficiency with a low ROE of 1.19%

The company has been able to generate a Return on Equity (avg) of 1.19% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.44% over the last 5 years

Flat results in Dec 25

RAW MATERIAL COST(Y) Grown by 18.88% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 31.39 %
DEBTORS TURNOVER RATIO(HY) Lowest at 3.78 times

With ROE of 1.46%, it has a expensive valuation with a 1.45 Price to Book Value

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 -2.46%, its profits have fallen by -21.8%

Below par performance in long term as well as near term

Along with generating -2.46% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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 FMCG)

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

Is Key Coffee, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Key Coffee, Inc.

-2.46%

-0.15

9.76%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.44%

EBIT Growth (5y)

2.62%

EBIT to Interest (avg)

-34.06

Debt to EBITDA (avg)

0.48

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.91

Tax Ratio

46.33%

Dividend Payout Ratio

120.07%

Pledged Shares

Institutional Holding

ROCE (avg)

1.33%

ROE (avg)

1.19%

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

1.45

EV to EBIT

78.44

EV to EBITDA

28.88

EV to Capital Employed

1.41

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

1.80%

ROE (Latest)

1.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

8What is working for the Company

NET PROFIT(HY)

Higher at JPY 818 MM

CASH AND EQV(HY)

Highest at JPY 11,488 MM

NET SALES(Q)

Highest at JPY 26,473 MM

-15What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 18.88% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 31.39 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.78 times

INTEREST(Q)

Highest at JPY 48 MM

PRE-TAX PROFIT(Q)

Fallen at -36.32%

Here's what is working for Key Coffee, Inc.

Net Profit

Higher at JPY 818 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Net Sales

Highest at JPY 26,473 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 26,473 MM has Grown at 22.22%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 11,488 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Key Coffee, Inc.

Interest

At JPY 48 MM has Grown at 41.18%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 48 MM

in the last five periods and Increased by 41.18% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -36.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Highest at 31.39 %

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

Debtors Turnover Ratio

Lowest at 3.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 18.88% (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