KFC Ltd. (3420) 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

Sanyo Engineering & Construction, Inc.

Kawagishi Bridge Works Co., Ltd.

Mori-Gumi Co., Ltd.

NASU DENKI-TEKKO CO., LTD.

UEKI CORP.

DN Holdings Co., Ltd.

Kaneshita Construction Co., Ltd.

Japan Warranty Support Co., Ltd.

Sumiken Mitsui Road Co., Ltd.

KFC Ltd.

CEL Corp.

Why is KFC Ltd. ?

Weak Long Term Fundamental Strength with a -17.10% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of -1.17% and Operating profit at -17.10% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 11.21 MM has Grown at 32.25%
DEBT-EQUITY RATIO (HY) Highest at -12.01 %
INVENTORY TURNOVER RATIO(HY) Lowest at 5.14 times

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.67% returns

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 KFC Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

KFC Ltd.

-100.0%

0.39

21.74%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.17%

EBIT Growth (5y)

-17.10%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.18

Tax Ratio

32.53%

Dividend Payout Ratio

45.81%

Pledged Shares

Institutional Holding

ROCE (avg)

9.85%

ROE (avg)

7.60%

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

0.52

EV to EBIT

6.73

EV to EBITDA

5.53

EV to Capital Employed

0.44

EV to Sales

0.31

PEG Ratio

Dividend Yield

ROCE (Latest)

6.57%

ROE (Latest)

4.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

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 5.95%

INTEREST COVERAGE RATIO(Q)

Highest at 11,718.39

RAW MATERIAL COST(Y)

Fallen by -31.79% (YoY

OPERATING PROFIT(Q)

Highest at JPY 613.58 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.82 %

PRE-TAX PROFIT(Q)

At JPY 627.6 MM has Grown at 73.43%

NET PROFIT(Q)

At JPY 431.93 MM has Grown at 76.99%

-12What is not working for the Company

INTEREST(HY)

At JPY 11.21 MM has Grown at 32.25%

DEBT-EQUITY RATIO (HY)

Highest at -12.01 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.14 times

NET SALES(Q)

Lowest at JPY 5,671.23 MM

Here's what is working for KFC Ltd.

Interest Coverage Ratio

Highest at 11,718.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 613.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 10.82 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 627.6 MM has Grown at 73.43%

over average net sales of the previous four periods of JPY 361.87 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 431.93 MM has Grown at 76.99%

over average net sales of the previous four periods of JPY 244.05 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -31.79% (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 KFC Ltd.

Interest

At JPY 11.21 MM has Grown at 32.25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 5,671.23 MM has Fallen at -11.21%

over average net sales of the previous four periods of JPY 6,387.01 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 5,671.23 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Debt-Equity Ratio

Highest at -12.01 %

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 5.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio