Why is KLASS Corp. ?
1
The company is Net-Debt Free
- Poor long term growth as Operating profit has grown by an annual rate 11.71% of over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 5.48% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate 11.71% of over the last 5 years
3
The company has declared Negative results for the last 4 consecutive quarters
- CASH AND EQV(HY) Lowest at JPY 2,378.57 MM
- INTEREST(Q) Highest at JPY 13.26 MM
4
With ROCE of 4.77%, it has a fair valuation with a 0.85 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 -9.72%, its profits have risen by 56% ; the PEG ratio of the company is 0.2
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -9.72% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
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 Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is KLASS Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
KLASS Corp.
-9.72%
-1.20
15.32%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality key factors
Factor
Value
Sales Growth (5y)
3.20%
EBIT Growth (5y)
11.71%
EBIT to Interest (avg)
10.28
Debt to EBITDA (avg)
4.89
Net Debt to Equity (avg)
0.81
Sales to Capital Employed (avg)
1.40
Tax Ratio
27.32%
Dividend Payout Ratio
31.14%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.00%
ROE (avg)
5.48%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.72
EV to EBIT
17.80
EV to EBITDA
10.38
EV to Capital Employed
0.85
EV to Sales
0.49
PEG Ratio
0.23
Dividend Yield
NA
ROCE (Latest)
4.77%
ROE (Latest)
5.49%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
6What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -0.18% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 77.78 %
INVENTORY TURNOVER RATIO(HY)
Highest at 5.19 times
DEBTORS TURNOVER RATIO(HY)
Highest at 3.89 times
NET SALES(Q)
Highest at JPY 2,996.22 MM
OPERATING PROFIT(Q)
Highest at JPY 299.08 MM
-12What is not working for the Company
CASH AND EQV(HY)
Lowest at JPY 2,378.57 MM
INTEREST(Q)
Highest at JPY 13.26 MM
Here's what is working for KLASS Corp.
Net Sales
Highest at JPY 2,996.22 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 299.08 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Debt-Equity Ratio
Lowest at 77.78 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 5.19 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 3.89 times
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 -0.18% (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 KLASS Corp.
Interest
At JPY 13.26 MM has Grown at 15.41%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 13.26 MM
in the last five periods and Increased by 15.41% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 2,378.57 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






