Kikukawa Enterprise, Inc. (6346) 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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Kikukawa Enterprise, Inc.

Why is Kikukawa Enterprise, Inc. ?

Poor Management Efficiency with a low ROE of 4.78%

The company has been able to generate a Return on Equity (avg) of 4.78% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 8.72% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.78% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.79% and Operating profit at 8.72% over the last 5 years

With a fall in Net Sales of -12.82%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
NET SALES(Q) At JPY 948.51 MM has Fallen at -23.22%
ROCE(HY) Lowest at 2.59%
RAW MATERIAL COST(Y) Grown by 5.51% (YoY)

With ROE of 4.71%, it has a fair valuation with a 0.59 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 -2.20%, its profits have fallen by -35.6%
At the current price, the company has a high dividend yield of 0

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 Industrial Manufacturing)

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

Is Kikukawa Enterprise, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kikukawa Enterprise, Inc.

-2.2%

1.16

21.07%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.79%

EBIT Growth (5y)

8.72%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

0.44

Tax Ratio

30.73%

Dividend Payout Ratio

37.25%

Pledged Shares

Institutional Holding

ROCE (avg)

17.00%

ROE (avg)

4.78%

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

0.59

EV to EBIT

-1.38

EV to EBITDA

-1.22

EV to Capital Employed

-0.25

EV to Sales

-0.21

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

4.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

1What is working for the Company

CASH AND EQV(HY)

Highest at JPY 17,145.25 MM

-33What is not working for the Company

NET SALES(Q)

At JPY 948.51 MM has Fallen at -23.22%

ROCE(HY)

Lowest at 2.59%

RAW MATERIAL COST(Y)

Grown by 5.51% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.87 times

OPERATING PROFIT MARGIN(Q)

Lowest at 8.46 %

PRE-TAX PROFIT(Q)

Lowest at JPY 81.11 MM

NET PROFIT(Q)

Lowest at JPY 55.85 MM

EPS(Q)

Lowest at JPY 45.97

Here's what is working for Kikukawa Enterprise, Inc.

Cash and Eqv

Highest at JPY 17,145.25 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 Kikukawa Enterprise, Inc.

Net Sales

At JPY 948.51 MM has Fallen at -23.22%

over average net sales of the previous four periods of JPY 1,235.42 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 81.11 MM has Fallen at -60.58%

over average net sales of the previous four periods of JPY 205.73 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 55.85 MM has Fallen at -62.67%

over average net sales of the previous four periods of JPY 149.61 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit Margin

Lowest at 8.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 81.11 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 55.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 45.97

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 2.87 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 5.51% (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