Koatsu Gas Kogyo Co., Ltd. (4097) 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

ISHIHARA SANGYO KAISHA LTD.

Mec Co., Ltd.

Riken Technos Corp.

JSP Corp.

Koatsu Gas Kogyo Co., Ltd.

Dainichiseika Color & Chemicals Mfg. Co., Ltd.

Ise Chemicals Corp.

Toyo Gosei Co., Ltd.

TENMA Corp.

Kanto Denka Kogyo Co., Ltd.

C.I. Takiron Corp.

Why is Koatsu Gas Kogyo Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.05%

The company has been able to generate a Return on Equity (avg) of 6.05% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 5.96% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.05% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 5.96% of over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 45 MM has Grown at 21.62%
ROCE(HY) Lowest at 5.72%

With ROE of 5.30%, it has a very attractive valuation with a 0.75 Price to Book Value

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 -2.50%, its profits have fallen by -13.2%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -2.50% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Koatsu Gas Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Koatsu Gas Kogyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Koatsu Gas Kogyo Co., Ltd.

-2.5%

0.61

22.65%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.03%

EBIT Growth (5y)

5.96%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

1.08

Tax Ratio

32.68%

Dividend Payout Ratio

47.37%

Pledged Shares

Institutional Holding

ROCE (avg)

9.76%

ROE (avg)

6.05%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.75

EV to EBIT

7.72

EV to EBITDA

4.91

EV to Capital Employed

0.68

EV to Sales

0.44

PEG Ratio

Dividend Yield

ROCE (Latest)

8.77%

ROE (Latest)

5.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

7What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 88.68%

RAW MATERIAL COST(Y)

Fallen by -0.98% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -24.5 %

DIVIDEND PER SHARE(HY)

Highest at JPY 3.61

NET SALES(Q)

Highest at JPY 25,466 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,950 MM

NET PROFIT(Q)

Highest at JPY 1,317.26 MM

-10What is not working for the Company

INTEREST(HY)

At JPY 45 MM has Grown at 21.62%

ROCE(HY)

Lowest at 5.72%

Here's what is working for Koatsu Gas Kogyo Co., Ltd.

Net Sales

Highest at JPY 25,466 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 1,950 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,317.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -24.5 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at JPY 3.61

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 88.68%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.98% (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 Koatsu Gas Kogyo Co., Ltd.

Interest

At JPY 45 MM has Grown at 21.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)