Kobe Electric Railway Co. Ltd. (9046) 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

Chichibu Railway Co., Ltd.

West Japan Railway Co.

Keihan Holdings Co., Ltd.

Keikyu Corp.

Tobu Railway Co., Ltd.

Odakyu Electric Railway Co., Ltd.

Keisei Electric Railway Co., Ltd.

Kyushu Railway Co.

East Japan Railway Co.

Kobe Electric Railway Co. Ltd.

Why is Kobe Electric Railway Co. Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.78%

Poor long term growth as Net Sales has grown by an annual rate of 2.91% and Operating profit at 28.22% over the last 5 years
The company is Net-Debt Free
INTEREST(HY) At JPY 380 MM has Grown at 18.38%
INVENTORY TURNOVER RATIO(HY) Lowest at 18.82 times
DEBTORS TURNOVER RATIO(HY) Lowest at 13.95 times

With ROCE of 3.08%, it has a expensive valuation with a 0.93 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 -2.70%, its profits have risen by 9.8% ; the PEG ratio of the company is 1.3
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.70% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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 Construction)

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

Is Kobe Electric Railway Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kobe Electric Railway Co. Ltd.

-2.64%

-0.69

17.20%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.91%

EBIT Growth (5y)

28.22%

EBIT to Interest (avg)

2.86

Debt to EBITDA (avg)

13.97

Net Debt to Equity (avg)

2.31

Sales to Capital Employed (avg)

0.29

Tax Ratio

28.99%

Dividend Payout Ratio

13.53%

Pledged Shares

Institutional Holding

ROCE (avg)

2.23%

ROE (avg)

3.44%

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

0.78

EV to EBIT

30.08

EV to EBITDA

15.66

EV to Capital Employed

0.93

EV to Sales

3.12

PEG Ratio

1.25

Dividend Yield

ROCE (Latest)

3.08%

ROE (Latest)

6.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

3What is working for the Company

ROCE(HY)

Highest at 5.57%

DEBT-EQUITY RATIO (HY)

Lowest at 205.48 %

-12What is not working for the Company

INTEREST(HY)

At JPY 380 MM has Grown at 18.38%

INVENTORY TURNOVER RATIO(HY)

Lowest at 18.82 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.95 times

RAW MATERIAL COST(Y)

Grown by 8.11% (YoY

Here's what is working for Kobe Electric Railway Co. Ltd.

Debt-Equity Ratio

Lowest at 205.48 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Kobe Electric Railway Co. Ltd.

Interest

At JPY 380 MM has Grown at 18.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 18.82 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 13.95 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 8.11% (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