Kikusui Chemical Industries Co., Ltd. (7953) 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

Niitaka Co., Ltd.

Tokyo Printing Ink Manufacturing Co., Ltd.

Kimoto Co., Ltd.

Nippon Felt Co., Ltd.

Kikusui Chemical Industries Co., Ltd.

Japan Insulation Co., Ltd.

Asahipen Corp.

Isamu Paint Co., Ltd.

Mipox Corp.

Wavelock Holdings Co., Ltd.

Teraoka Seisakusho Co., Ltd.

Why is Kikusui Chemical Industries Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 36.45

Poor long term growth as Net Sales has grown by an annual rate of -0.22% over the last 5 years

Negative results in Jun 25

INTEREST(HY) At JPY 10.64 MM has Grown at 60.46%
ROCE(HY) Lowest at 1.28%
PRE-TAX PROFIT(Q) Fallen at -31.77%

With ROE of 1.93%, it has a very attractive valuation with a 0.50 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 -1.31%, its profits have fallen by -56%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.31% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kikusui Chemical Industries Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Kikusui Chemical Industries Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kikusui Chemical Industries Co., Ltd.

-1.06%

-0.50

14.77%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.22%

EBIT Growth (5y)

-4.21%

EBIT to Interest (avg)

36.45

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.94

Tax Ratio

36.92%

Dividend Payout Ratio

129.03%

Pledged Shares

Institutional Holding

ROCE (avg)

5.85%

ROE (avg)

4.38%

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

0.50

EV to EBIT

9.30

EV to EBITDA

3.85

EV to Capital Employed

0.34

EV to Sales

0.12

PEG Ratio

Dividend Yield

ROCE (Latest)

3.67%

ROE (Latest)

1.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -26.83 %

-20What is not working for the Company

INTEREST(HY)

At JPY 10.64 MM has Grown at 60.46%

ROCE(HY)

Lowest at 1.28%

PRE-TAX PROFIT(Q)

Fallen at -31.77%

NET PROFIT(Q)

Fallen at -41.76%

Here's what is working for Kikusui Chemical Industries Co., Ltd.

Debt-Equity Ratio

Lowest at -26.83 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 0% (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 Kikusui Chemical Industries Co., Ltd.

Interest

At JPY 10.64 MM has Grown at 60.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -31.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -41.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)