King Jim Co., Ltd. (7962) 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

Uchida Yoko Co., Ltd.

Okamura Corp.

Itoki Corp.

Yagami Inc.

KOKUYO CO., LTD.

King Jim Co., Ltd.

Pilot Corp.

AuBEX Corp.

Takano Co., Ltd.

Imura & Co. Ltd.

LIHIT LAB., INC.

Why is King Jim Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.15%

The company has been able to generate a Return on Equity (avg) of 3.15% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 83.48

Poor long term growth as Operating profit has grown by an annual rate -21.07% of over the last 5 years

With a growth in Operating Profit of 864.38%, the company declared Very Positive results in Dec 25

ROCE(HY) Highest at 2.16%
PRE-TAX PROFIT(Q) At JPY 517.12 MM has Grown at 135.9%
NET PROFIT(Q) At JPY 322.44 MM has Grown at 218.95%

With ROE of 1.31%, it has a expensive valuation with a 1.12 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 -5.81%, its profits have fallen by -3%
At the current price, the company has a high dividend yield of 0.1

Below par performance in long term as well as near term

Along with generating -5.81% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to King Jim Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is King Jim Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

King Jim Co., Ltd.

-5.7%

-0.88

11.27%

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)

3.22%

EBIT Growth (5y)

-21.07%

EBIT to Interest (avg)

83.48

Debt to EBITDA (avg)

0.66

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.27

Tax Ratio

77.71%

Dividend Payout Ratio

92.62%

Pledged Shares

Institutional Holding

ROCE (avg)

4.20%

ROE (avg)

3.15%

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

1.12

EV to EBIT

71.09

EV to EBITDA

21.14

EV to Capital Employed

1.12

EV to Sales

0.70

PEG Ratio

Dividend Yield

0.12%

ROCE (Latest)

1.57%

ROE (Latest)

1.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

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

15What is working for the Company

ROCE(HY)

Highest at 2.16%

PRE-TAX PROFIT(Q)

At JPY 517.12 MM has Grown at 135.9%

NET PROFIT(Q)

At JPY 322.44 MM has Grown at 218.95%

RAW MATERIAL COST(Y)

Fallen by -1.83% (YoY

CASH AND EQV(HY)

Highest at JPY 13,732.64 MM

OPERATING PROFIT MARGIN(Q)

Highest at 6.2 %

-9What is not working for the Company

INTEREST(HY)

At JPY 38.35 MM has Grown at 48.89%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.13 times

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

Pre-Tax Profit

At JPY 517.12 MM has Grown at 135.9%

over average net sales of the previous four periods of JPY 219.21 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 322.44 MM has Grown at 218.95%

over average net sales of the previous four periods of JPY 101.1 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit Margin

Highest at 6.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 13,732.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.83% (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 Jim Co., Ltd.

Interest

At JPY 38.35 MM has Grown at 48.89%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 7.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio