Kimura Unity Co., Ltd. (9368) 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

Daiichi Koutsu Sangyo Co., Ltd.

Kimura Unity Co., Ltd.

AZ-COM Maruwa Holdings, Inc.

TOHO Co., Ltd. (8142)

Inui Global Logistics Co., Ltd.

Nishi-Nippon Railroad Co., Ltd.

Fuji Kyuko Co., Ltd.

Sankyu, Inc.

Sotetsu Holdings, Inc.

Nankai Electric Railway Co., Ltd.

Sanyo Electric Railway Co., Ltd.

Why is Kimura Unity Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 34.84

Poor long term growth as Net Sales has grown by an annual rate of 4.08% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 7.67%
INTEREST(Q) At JPY 29 MM has Grown at 31.82%
OPERATING PROFIT MARGIN(Q) Lowest at 9.17 %

With ROE of 9.04%, it has a very attractive valuation with a 1.07 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 10.69%, its profits have risen by 1.2%

Underperformed the market in the last 1 year

The stock has generated a return of 10.69% 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 hold?

Overall Portfolio exposure to Kimura Unity Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is Kimura Unity Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kimura Unity Co., Ltd.

10.69%

0.06

15.48%

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)

4.08%

EBIT Growth (5y)

15.33%

EBIT to Interest (avg)

34.84

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.38

Tax Ratio

31.13%

Dividend Payout Ratio

40.65%

Pledged Shares

Institutional Holding

ROCE (avg)

10.69%

ROE (avg)

8.04%

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

1.07

EV to EBIT

8.27

EV to EBITDA

5.47

EV to Capital Employed

1.08

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

13.03%

ROE (Latest)

9.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 3.9

DIVIDEND PAYOUT RATIO(Y)

Highest at 431.57%

RAW MATERIAL COST(Y)

Fallen by -3.34% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 85.68 times

NET SALES(Q)

Highest at JPY 17,049 MM

-9What is not working for the Company

ROCE(HY)

Lowest at 7.67%

INTEREST(Q)

At JPY 29 MM has Grown at 31.82%

OPERATING PROFIT MARGIN(Q)

Lowest at 9.17 %

NET PROFIT(Q)

Lowest at JPY 392.94 MM

EPS(Q)

Lowest at JPY 3.94

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

Dividend per share

Highest at JPY 3.9 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 17,049 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 85.68 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 431.57%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.34% (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 Unity Co., Ltd.

Interest

At JPY 29 MM has Grown at 31.82%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 392.94 MM has Fallen at -56.15%

over average net sales of the previous four periods of JPY 896 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit Margin

Lowest at 9.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 392.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 3.94

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.45 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income