ScoreWhy is Kitagawa Corp. ?
1
Poor Management Efficiency with a low ROCE of 2.93%
- The company has been able to generate a Return on Capital Employed (avg) of 2.93% 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 -0.35% and Operating profit at -9.81% over the last 5 years
- PRE-TAX PROFIT(Q) At JPY 494 MM has Fallen at -60.54%
- NET PROFIT(Q) At JPY 266.16 MM has Fallen at -67.44%
- INTEREST(HY) At JPY 169 MM has Grown at 8.33%
3
With ROCE of 3.93%, it has a very attractive valuation with a 0.37 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 25.74%, its profits have fallen by -26.4%
- At the current price, the company has a high dividend yield of 0
4
Underperformed the market in the last 1 year
- The stock has generated a return of 25.74% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%
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.
25.74%
0.45
32.23%
Japan Nikkei 225
38.94%
1.38
28.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.35%
EBIT Growth (5y)
-9.81%
EBIT to Interest (avg)
8.13
Debt to EBITDA (avg)
0.88
Net Debt to Equity (avg)
0.06
Sales to Capital Employed (avg)
1.07
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
11
Industry P/E
Price to Book Value
0.33
EV to EBIT
9.29
EV to EBITDA
3.27
EV to Capital Employed
0.36
EV to Sales
0.28
PEG Ratio
NA
Dividend Yield
0.04%
ROCE (Latest)
3.93%
ROE (Latest)
2.97%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
NET PROFIT(9M)
Higher at JPY 2,622.16 MM
CASH AND EQV(HY)
Highest at JPY 22,953 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 3.99 times
-12What is not working for the Company
PRE-TAX PROFIT(Q)
At JPY 494 MM has Fallen at -60.54%
NET PROFIT(Q)
At JPY 266.16 MM has Fallen at -67.44%
INTEREST(HY)
At JPY 169 MM has Grown at 8.33%
RAW MATERIAL COST(Y)
Grown by 17.5% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.27 times
NET SALES(Q)
Lowest at JPY 12,708 MM
OPERATING PROFIT(Q)
Lowest at JPY 1,195 MM
Here's what is working for Kitagawa Corp.
Cash and Eqv
Highest at JPY 22,953 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 3.99 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Kitagawa Corp.
Pre-Tax Profit
At JPY 494 MM has Fallen at -60.54%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 266.16 MM has Fallen at -67.44%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 169 MM has Grown at 8.33%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
Lowest at JPY 12,708 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Operating Profit
Lowest at JPY 1,195 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (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
Raw Material Cost
Grown by 17.5% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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