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

Kotobuki Spirits Co., Ltd.

Key Coffee, Inc.

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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 10.13% over the last 5 years

With a growth in Net Sales of 30.77%, the company declared Very Positive results in Mar 26

ROCE(HY) Highest at 3.17%
RAW MATERIAL COST(Y) Fallen by -25.48% (YoY)
NET SALES(Q) At JPY 22,739 MM has Grown at 30.77%

With ROE of 1.37%, it has a very expensive valuation with a 1.44 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 1.13%, its profits have fallen by -37.5%

Underperformed the market in the last 1 year

The stock has generated a return of 1.13% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Key Coffee, Inc. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Key Coffee, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Key Coffee, Inc.

1.13%

-0.49

8.89%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.13%

EBIT Growth (5y)

17.24%

EBIT to Interest (avg)

-34.06

Debt to EBITDA (avg)

0.48

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

1.92

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

105

Industry P/E

Price to Book Value

1.44

EV to EBIT

132.32

EV to EBITDA

44.57

EV to Capital Employed

1.33

EV to Sales

0.63

PEG Ratio

Dividend Yield

ROCE (Latest)

1.01%

ROE (Latest)

1.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

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

20What is working for the Company

ROCE(HY)

Highest at 3.17%

RAW MATERIAL COST(Y)

Fallen by -25.48% (YoY

NET SALES(Q)

At JPY 22,739 MM has Grown at 30.77%

PRE-TAX PROFIT(Q)

At JPY -194 MM has Grown at 79.81%

NET PROFIT(Q)

At JPY -141 MM has Grown at 83.43%

-11What is not working for the Company

INTEREST(HY)

At JPY 94 MM has Grown at 123.81%

DEBT-EQUITY RATIO (HY)

Highest at 41.33 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.87 times

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

Net Sales

At JPY 22,739 MM has Grown at 30.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -194 MM has Grown at 79.81%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -141 MM has Grown at 83.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -25.48% (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 326 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 326 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 94 MM has Grown at 123.81%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 41.33 % and Grown

In each half year 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 3.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio