Kitac Corp. (4707) 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

ECOMIC CO., LTD.

Forval RealStraight Inc.

Delivery Consulting, Inc.

JTEC Corp.

Japan Reliance Service Corp.

Palma Co. Ltd.

Kitac Corp.

DesignOne Japan, Inc.

Cacco, Inc.

BCC Co., Ltd.

ALiNK Internet, Inc.

Why is Kitac Corp. ?

Poor Management Efficiency with a low ROCE of 3.25%

The company has been able to generate a Return on Capital Employed (avg) of 3.25% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 3.37% and Operating profit at -14.32% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.40% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.37% and Operating profit at -14.32% over the last 5 years

Flat results in Apr 26

NET PROFIT(9M) At JPY 157.73 MM has Grown at -28.99%
ROCE(HY) Lowest at 4.06%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.52 times

With ROCE of 2.06%, it has a fair valuation with a 0.71 Enterprise value to Capital Employed

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 -4.58%, its profits have fallen by -58.6%

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 Miscellaneous)

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

Is Kitac Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kitac Corp.

-4.58%

-0.63

26.56%

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)

3.37%

EBIT Growth (5y)

-14.32%

EBIT to Interest (avg)

9.20

Debt to EBITDA (avg)

4.98

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

0.60

Tax Ratio

29.13%

Dividend Payout Ratio

18.85%

Pledged Shares

Institutional Holding

ROCE (avg)

3.25%

ROE (avg)

4.40%

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

0.54

EV to EBIT

34.44

EV to EBITDA

14.56

EV to Capital Employed

0.71

EV to Sales

1.15

PEG Ratio

Dividend Yield

ROCE (Latest)

2.06%

ROE (Latest)

2.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

Bullish

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

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

11What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -8.78% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 41.94 %

NET SALES(Q)

Highest at JPY 976.93 MM

OPERATING PROFIT(Q)

Highest at JPY 223.94 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.92 %

PRE-TAX PROFIT(Q)

Highest at JPY 190.3 MM

NET PROFIT(Q)

Highest at JPY 132.72 MM

-16What is not working for the Company

NET PROFIT(9M)

At JPY 157.73 MM has Grown at -28.99%

ROCE(HY)

Lowest at 4.06%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.52 times

INTEREST(Q)

Highest at JPY 7.37 MM

Here's what is working for Kitac Corp.

Net Sales

Highest at JPY 976.93 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 223.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 22.92 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 190.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 132.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 41.94 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.78% (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 Kitac Corp.

Interest

At JPY 7.37 MM has Grown at 36.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 7.37 MM

in the last five periods and Increased by 36.85% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 2.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio