King Co., Ltd. (8118) 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

Matsuoka Corp.

Morito Co., Ltd.

Onward Holdings Co., Ltd.

SANYO SHOKAI LTD.

Achilles Corp.

World Co., Ltd.

TSI Holdings Co., Ltd.

HONEYS Holdings Co., Ltd.

Gunze Ltd.

Jichodo Co., Ltd.

King Co., Ltd.

Why is King Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.31%

The company has been able to generate a Return on Equity (avg) of 2.31% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 2.31%

Poor long term growth as Net Sales has grown by an annual rate of -1.95% and Operating profit at 89.55% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 2.31% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.95% and Operating profit at 89.55% over the last 5 years

Flat results in Mar 26

CASH AND EQV(HY) Lowest at JPY 20,165 MM
DEBT-EQUITY RATIO (HY) Highest at -40.86 %

With ROE of 2.70%, it has a attractive valuation with a 1.32 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 48.09%, its profits have fallen by -9.9%

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 Footwear)

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

Is King Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

King Co., Ltd.

48.09%

2.95

27.27%

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)

-1.95%

EBIT Growth (5y)

89.55%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.36

Tax Ratio

33.08%

Dividend Payout Ratio

45.95%

Pledged Shares

Institutional Holding

1.16%

ROCE (avg)

7.49%

ROE (avg)

2.31%

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

1.32

EV to EBIT

25.78

EV to EBITDA

16.97

EV to Capital Employed

1.56

EV to Sales

2.58

PEG Ratio

Dividend Yield

ROCE (Latest)

6.06%

ROE (Latest)

2.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 33,800

RAW MATERIAL COST(Y)

Fallen by -0.45% (YoY

NET SALES(Q)

Highest at JPY 2,067 MM

OPERATING PROFIT(Q)

Highest at JPY 338 MM

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 20,165 MM

DEBT-EQUITY RATIO (HY)

Highest at -40.86 %

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

Interest Coverage Ratio

Highest at 33,800

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 2,067 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 338 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Raw Material Cost

Fallen by -0.45% (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 King Co., Ltd.

Cash and Eqv

Lowest at JPY 20,165 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -40.86 %

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