Kitanihon Spinning Co., Ltd. (3409) 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

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Kitanihon Spinning Co., Ltd.

Why is Kitanihon Spinning Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 3.34% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 3.42% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 3.34% of over the last 5 years

INTEREST(HY) At JPY 6.22 MM has Grown at 10.29%
PRE-TAX PROFIT(Q) At JPY -19.48 MM has Fallen at -75.63%
OPERATING PROFIT(Q) Lowest at JPY -18.26 MM

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -13.97%, its profits have fallen by -136.2%

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 Garments & Apparels)

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

Is Kitanihon Spinning Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kitanihon Spinning Co., Ltd.

-100.0%

0.25

76.97%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.56%

EBIT Growth (5y)

3.34%

EBIT to Interest (avg)

-9.57

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.89

Tax Ratio

12.57%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

3.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.81

EV to EBIT

-92.80

EV to EBITDA

-145.13

EV to Capital Employed

3.76

EV to Sales

2.79

PEG Ratio

Dividend Yield

0.43%

ROCE (Latest)

-4.05%

ROE (Latest)

-4.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

2What is working for the Company

NET PROFIT(HY)

Higher at JPY -36.35 MM

-23What is not working for the Company

INTEREST(HY)

At JPY 6.22 MM has Grown at 10.29%

PRE-TAX PROFIT(Q)

At JPY -19.48 MM has Fallen at -75.63%

OPERATING PROFIT(Q)

Lowest at JPY -18.26 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.78 %

NET PROFIT(Q)

At JPY -19.76 MM has Fallen at -53.32%

RAW MATERIAL COST(Y)

Grown by 11.49% (YoY

NET SALES(Q)

Lowest at JPY 382.31 MM

Here's what is working for Kitanihon Spinning Co., Ltd.

Depreciation

Highest at JPY 5.29 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Kitanihon Spinning Co., Ltd.

Pre-Tax Profit

At JPY -19.48 MM has Fallen at -75.63%

over average net sales of the previous four periods of JPY -11.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 6.22 MM has Grown at 10.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 382.31 MM has Fallen at -9.18%

over average net sales of the previous four periods of JPY 420.98 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -18.26 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -4.78 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At JPY -19.76 MM has Fallen at -53.32%

over average net sales of the previous four periods of JPY -12.89 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 382.31 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Raw Material Cost

Grown by 11.49% (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