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

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King Co., Ltd.

World 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

Poor long term growth as Net Sales has grown by an annual rate of -5.16% and Operating profit at -3.35% over the last 5 years

Negative results in Dec 25

NET PROFIT(HY) At JPY 291 MM has Grown at -32.43%
INTEREST(Q) At JPY 2 MM has Grown at 100%
DEBT-EQUITY RATIO (HY) Highest at -43.51 %

With ROE of 3.26%, it has a very attractive valuation with a 0.87 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 51.00%, its profits have risen by 31.5% ; the PEG ratio of the company is 0.9

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.

51.0%

2.90

22.04%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.16%

EBIT Growth (5y)

-3.35%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.37

Tax Ratio

21.52%

Dividend Payout Ratio

39.25%

Pledged Shares

Institutional Holding

1.16%

ROCE (avg)

6.33%

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

0.87

EV to EBIT

10.69

EV to EBITDA

7.33

EV to Capital Employed

0.76

EV to Sales

1.13

PEG Ratio

0.85

Dividend Yield

ROCE (Latest)

7.14%

ROE (Latest)

3.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

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 -4.65% (YoY

CASH AND EQV(HY)

Highest at JPY 20,556 MM

-15What is not working for the Company

NET PROFIT(HY)

At JPY 291 MM has Grown at -32.43%

INTEREST(Q)

At JPY 2 MM has Grown at 100%

DEBT-EQUITY RATIO (HY)

Highest at -43.51 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.49 times

NET SALES(Q)

Fallen at -10.25%

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

Cash and Eqv

Highest at JPY 20,556 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.65% (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.

Interest

At JPY 2 MM has Grown at 100%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 291 MM has Grown at -32.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Sales

Fallen at -10.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Debt-Equity Ratio

Highest at -43.51 %

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

Debtors Turnover Ratio

Lowest at 10.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio