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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Saibo Co., Ltd.

Dynic Corp.

Sotoh Co., Ltd.

Havix Corp.

Tokai Senko KK

Toabo Corp.

FUJIX Ltd.

Nitto Seimo Co., Ltd.

Kitanihon Spinning Co., Ltd.

Marusho Hotta Co., Ltd.

OmiKenshi 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

Flat results in Jun 25

PRE-TAX PROFIT(Q) At JPY -18.12 MM has Fallen at -46.32%
INTEREST(Q) Highest at JPY 3.17 MM
NET PROFIT(Q) At JPY -19.64 MM has Fallen at -40.93%

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 15.31%, 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.

15.31%

0.21

74.33%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

0.87

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

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

8What is working for the Company

NET SALES(9M)

At JPY 1,290.57 MM has Grown at 21%

NET PROFIT(HY)

Higher at JPY -44.26 MM

RAW MATERIAL COST(Y)

Fallen by -17.81% (YoY

CASH AND EQV(HY)

Highest at JPY 1,152.84 MM

DEBT-EQUITY RATIO (HY)

Lowest at -8.48 %

INVENTORY TURNOVER RATIO(HY)

Highest at 9.34%

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -18.12 MM has Fallen at -46.32%

INTEREST(Q)

Highest at JPY 3.17 MM

NET PROFIT(Q)

At JPY -19.64 MM has Fallen at -40.93%

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

Net Sales

At JPY 1,290.57 MM has Grown at 21%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 1,152.84 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -8.48 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 9.34%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -17.81% (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 Kitanihon Spinning Co., Ltd.

Pre-Tax Profit

At JPY -18.12 MM has Fallen at -46.32%

over average net sales of the previous four periods of JPY -12.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

Highest at JPY 3.17 MM

in the last five periods and Increased by 6.46% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY -19.64 MM has Fallen at -40.93%

over average net sales of the previous four periods of JPY -13.94 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)