Kimura Co., Ltd. (7461) 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

Takihyo Co., Ltd.

Nexyz.Group Corp.

Weds Co., Ltd.

KITAKEI CO., LTD.

Kimura Co., Ltd.

TORQ, Inc.

A&A Material Corp.

Harima-Kyowa Co., Ltd.

KUWAZAWA Holdings Corp.

Daimaru Enawin Co., Ltd.

Green Cross Co., Ltd.

Why is Kimura Co., Ltd. ?

High Management Efficiency with a high ROE of 10.08%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 2.08% over the last 5 years

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 4,628.67
DEBT-EQUITY RATIO (HY) Highest at 22.87 %
INTEREST(Q) Highest at JPY 15.57 MM

With ROE of 8.59%, it has a very attractive valuation with a 0.42 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 -1.59%, its profits have risen by 10% ; the PEG ratio of the company is 0.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.59% 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 Kimura Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Kimura Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kimura Co., Ltd.

-1.78%

-0.17

22.75%

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)

2.08%

EBIT Growth (5y)

4.15%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.73

Tax Ratio

32.69%

Dividend Payout Ratio

20.04%

Pledged Shares

Institutional Holding

ROCE (avg)

13.28%

ROE (avg)

10.08%

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

0.42

EV to EBIT

4.94

EV to EBITDA

3.21

EV to Capital Employed

0.51

EV to Sales

0.27

PEG Ratio

0.49

Dividend Yield

ROCE (Latest)

10.22%

ROE (Latest)

8.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Bearish

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

5What is working for the Company

NET PROFIT(HY)

At JPY 501.17 MM has Grown at 101%

RAW MATERIAL COST(Y)

Fallen by -2.31% (YoY

CASH AND EQV(HY)

Highest at JPY 7,899.48 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 11.91%

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,628.67

DEBT-EQUITY RATIO (HY)

Highest at 22.87 %

INTEREST(Q)

Highest at JPY 15.57 MM

Here's what is working for Kimura Co., Ltd.

Net Profit

At JPY 501.17 MM has Grown at 101%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 7,899.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 11.91%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.31% (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 Kimura Co., Ltd.

Interest Coverage Ratio

Lowest at 4,628.67 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 15.57 MM has Grown at 37.95%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 15.57 MM

in the last five periods and Increased by 37.95% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 22.87 %

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