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
Weak Long Term Fundamental Strength with a 52.83% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 2.57% signifying low profitability per unit of shareholders funds
3
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
4
With a growth in Net Sales of 5.84%, the company declared Very Positive results in Jun 26
- DEBTORS TURNOVER RATIO(HY) Highest at 4 times
- RAW MATERIAL COST(Y) Fallen by -9.2% (YoY)
5
With ROCE of 4.73%, it has a very attractive valuation with a 0.41 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 20.32%, 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
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.
23.15%
0.74
30.30%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.04%
EBIT Growth (5y)
52.83%
EBIT to Interest (avg)
8.28
Debt to EBITDA (avg)
0.91
Net Debt to Equity (avg)
0.06
Sales to Capital Employed (avg)
1.03
Tax Ratio
25.59%
Dividend Payout Ratio
30.15%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.78%
ROE (avg)
2.57%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
0.37
EV to EBIT
8.74
EV to EBITDA
3.45
EV to Capital Employed
0.41
EV to Sales
0.34
PEG Ratio
0.08
Dividend Yield
NA
ROCE (Latest)
4.73%
ROE (Latest)
6.18%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 4 times
RAW MATERIAL COST(Y)
Fallen by -9.2% (YoY
-9What is not working for the Company
INTEREST(9M)
At JPY 289 MM has Grown at 9.47%
PRE-TAX PROFIT(Q)
At JPY 1,330 MM has Fallen at -46.15%
NET PROFIT(Q)
At JPY 935 MM has Fallen at -52.9%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.27 times
Here's what is working for Kitagawa Corp.
Debtors Turnover Ratio
Highest at 4 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
Raw Material Cost
Fallen by -9.2% (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.
Pre-Tax Profit
At JPY 1,330 MM has Fallen at -46.15%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 935 MM has Fallen at -52.9%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 289 MM has Grown at 9.47%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 3.27 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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