ScoreWhy is Kobe Steel, Ltd. ?
1
Poor Management Efficiency with a low ROCE of 6.63%
- The company has been able to generate a Return on Capital Employed (avg) of 6.63% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- 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 9.24% signifying low profitability per unit of shareholders funds
- ROCE(HY) Lowest at 8.76%
- PRE-TAX PROFIT(Q) At JPY 32,226 MM has Fallen at -47.98%
- RAW MATERIAL COST(Y) Grown by 6.23% (YoY)
3
With ROCE of 8.78%, it has a very attractive valuation with a 0.71 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 15.16%, its profits have risen by 9.3% ; the PEG ratio of the company is 0.5
- At the current price, the company has a high dividend yield of 0
4
Majority shareholders : FIIs
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kobe Steel, Ltd. should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kobe Steel, Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Kobe Steel, Ltd.
15.16%
1458.83
25.08%
Japan Nikkei 225
46.92%
1.74
26.89%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.44%
EBIT Growth (5y)
74.31%
EBIT to Interest (avg)
7.98
Debt to EBITDA (avg)
3.46
Net Debt to Equity (avg)
0.56
Sales to Capital Employed (avg)
1.32
Tax Ratio
14.38%
Dividend Payout Ratio
32.82%
Pledged Shares
0
Institutional Holding
0.08%
ROCE (avg)
6.61%
ROE (avg)
9.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
4
Industry P/E
Price to Book Value
0.55
EV to EBIT
8.10
EV to EBITDA
4.58
EV to Capital Employed
0.71
EV to Sales
0.50
PEG Ratio
0.46
Dividend Yield
0.03%
ROCE (Latest)
8.78%
ROE (Latest)
12.80%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 50.23 %
-12What is not working for the Company
ROCE(HY)
Lowest at 8.76%
PRE-TAX PROFIT(Q)
At JPY 32,226 MM has Fallen at -47.98%
RAW MATERIAL COST(Y)
Grown by 6.23% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.78 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.36 times
NET PROFIT(Q)
Lowest at JPY 21,623.38 MM
Here's what is working for Kobe Steel, Ltd.
Debt-Equity Ratio
Lowest at 50.23 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Kobe Steel, Ltd.
Pre-Tax Profit
At JPY 32,226 MM has Fallen at -47.98%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 21,623.38 MM has Fallen at -50.9%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Net Profit
Lowest at JPY 21,623.38 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Inventory Turnover Ratio
Lowest at 2.78 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 6.36 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 6.23% (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
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