KG Intelligence Co., Ltd. (2408) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Starts Publishing Corp.

Townnews-Sha Co., Ltd.

Alphapolis Co., Ltd.

KG Intelligence Co., Ltd.

Printnet, Inc.

Bunkeido Co., Ltd.

SE Holdings & Incubations Co., Ltd.

Impress Holdings, Inc.

Success Holders, Inc.

Shobunsha Holdings, Inc.

Seki Co., Ltd.

Why is KG Intelligence Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.84%

The company has been able to generate a Return on Equity (avg) of 3.84% signifying low profitability per unit of shareholders funds

Company has a low Debt to Equity ratio (avg) at times

Flat results in Jun 25

NET PROFIT(9M) At JPY 188.19 MM has Grown at -34.59%
DEBT-EQUITY RATIO (HY) Highest at -84.63 %
INVENTORY TURNOVER RATIO(HY) Lowest at 100.45%

With ROE of 4.12%, it has a very attractive valuation with a 0.82 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 8.27%, its profits have fallen by -29.1%

Underperformed the market in the last 1 year

The stock has generated a return of 8.27% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to KG Intelligence Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is KG Intelligence Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

KG Intelligence Co., Ltd.

8.27%

0.21

22.91%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.31%

EBIT Growth (5y)

25.99%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.83

Sales to Capital Employed (avg)

0.44

Tax Ratio

33.97%

Dividend Payout Ratio

106.09%

Pledged Shares

Institutional Holding

ROCE (avg)

30.54%

ROE (avg)

3.84%

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

0.82

EV to EBIT

-0.16

EV to EBITDA

-0.14

EV to Capital Employed

-0.05

EV to Sales

-0.02

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

4.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 239.43%

RAW MATERIAL COST(Y)

Fallen by -8.84% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 6.77

NET SALES(Q)

Highest at JPY 663.86 MM

-4What is not working for the Company

NET PROFIT(9M)

At JPY 188.19 MM has Grown at -34.59%

DEBT-EQUITY RATIO (HY)

Highest at -84.63 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 100.45%

Here's what is working for KG Intelligence Co., Ltd.

Dividend Payout Ratio

Highest at 239.43% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at JPY 663.86 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 6.77

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -8.84% (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 KG Intelligence Co., Ltd.

Net Profit

At JPY 188.19 MM has Grown at -34.59%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -84.63 %

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 100.45%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio