KH Neochem Co., Ltd. (4189) 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

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Asahi Kasei Corp.

Kuraray Co., Ltd.

KH Neochem Co., Ltd.

Mitsubishi Chemical Group Corp.

Why is KH Neochem Co., Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 14.79% of over the last 5 years

With a fall in Net Sales of -11.2%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 5 consecutive quarters
ROCE(HY) Lowest at 10.74%
INTEREST COVERAGE RATIO(Q) Lowest at 6,464.29
CASH AND EQV(HY) Lowest at JPY 10,594 MM

Underperformed the market in the last 1 year

The stock has generated a return of 16.57% 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 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 Chemicals & Petrochemicals)

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

Is KH Neochem Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

KH Neochem Co., Ltd.

16.57%

1.16

27.40%

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)

8.28%

EBIT Growth (5y)

14.79%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.98

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

1.38

Tax Ratio

29.58%

Dividend Payout Ratio

48.14%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

16.34%

ROE (avg)

14.82%

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

1.55

EV to EBIT

10.54

EV to EBITDA

6.75

EV to Capital Employed

1.48

EV to Sales

1.03

PEG Ratio

Dividend Yield

ROCE (Latest)

14.06%

ROE (Latest)

11.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.09% (YoY

-31What is not working for the Company

ROCE(HY)

Lowest at 10.74%

INTEREST COVERAGE RATIO(Q)

Lowest at 6,464.29

CASH AND EQV(HY)

Lowest at JPY 10,594 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.96 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.57 times

NET SALES(Q)

Lowest at JPY 25,581 MM

INTEREST(Q)

Highest at JPY 56 MM

OPERATING PROFIT(Q)

Lowest at JPY 3,620 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.15 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,927 MM

NET PROFIT(Q)

Lowest at JPY 1,348 MM

EPS(Q)

Lowest at JPY 38.5

Here's what is working for KH Neochem Co., Ltd.

Raw Material Cost

Fallen by -4.09% (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 KH Neochem Co., Ltd.

Interest

At JPY 56 MM has Grown at 19.15%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 6,464.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 25,581 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

Fallen at -11.2%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 56 MM

in the last five periods and Increased by 19.15% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 3,620 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 14.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 1,927 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 1,348 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 38.5

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 10,594 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio