ScoreWhy is Kitagawa Corp. ?
1
Poor Management Efficiency with a low ROCE of 2.99%
- The company has been able to generate a Return on Capital Employed (avg) of 2.99% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 4.04% and Operating profit at 52.83% over the last 5 years
3
With a growth in Net Profit of 595.95%, the company declared Very Positive results in Mar 26
- NET PROFIT(Q) At JPY 578.43 MM has Grown at 990.38%
- DEBTORS TURNOVER RATIO(HY) Highest at 3.91 times
- PRE-TAX PROFIT(Q) At JPY 701 MM has Grown at 197.03%
4
With ROCE of 4.73%, it has a very attractive valuation with a 0.43 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 28.06%, its profits have risen by 75.5% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 28.06% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kitagawa Corp. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kitagawa Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kitagawa Corp.
28.06%
0.79
29.49%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.04%
EBIT Growth (5y)
52.83%
EBIT to Interest (avg)
8.13
Debt to EBITDA (avg)
0.88
Net Debt to Equity (avg)
0.06
Sales to Capital Employed (avg)
1.05
Tax Ratio
46.57%
Dividend Payout Ratio
37.06%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.99%
ROE (avg)
2.57%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
0.39
EV to EBIT
9.09
EV to EBITDA
3.59
EV to Capital Employed
0.43
EV to Sales
0.35
PEG Ratio
0.08
Dividend Yield
NA
ROCE (Latest)
4.73%
ROE (Latest)
6.18%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
NET PROFIT(Q)
At JPY 578.43 MM has Grown at 990.38%
DEBTORS TURNOVER RATIO(HY)
Highest at 3.91 times
PRE-TAX PROFIT(Q)
At JPY 701 MM has Grown at 197.03%
RAW MATERIAL COST(Y)
Fallen by -11.42% (YoY
CASH AND EQV(HY)
Highest at JPY 22,732 MM
DIVIDEND PER SHARE(HY)
Highest at JPY 3.91
NET SALES(Q)
Highest at JPY 16,624 MM
OPERATING PROFIT(Q)
Highest at JPY 1,834 MM
OPERATING PROFIT MARGIN(Q)
Highest at 11.03 %
-5What is not working for the Company
INTEREST(Q)
At JPY 111 MM has Grown at 26.14%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.46 times
Here's what is working for Kitagawa Corp.
Net Profit
At JPY 578.43 MM has Grown at 990.38%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Pre-Tax Profit
At JPY 701 MM has Grown at 197.03%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Debtors Turnover Ratio
Highest at 3.91 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at JPY 16,624 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 1,834 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 11.03 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Cash and Eqv
Highest at JPY 22,732 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per share
Highest at JPY 3.91
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by -11.42% (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 Kitagawa Corp.
Interest
At JPY 111 MM has Grown at 26.14%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 3.46 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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