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
3
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 1,786.77
- DEBTORS TURNOVER RATIO(HY) Lowest at 6.58%
- NET SALES(Q) Lowest at JPY 569,056 MM
4
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 29.12%, 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
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.
29.12%
1494.10
23.49%
Japan Nikkei 225
28.54%
1.11
25.75%
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
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -5.91% (YoY
NET PROFIT(Q)
At JPY 41,943.03 MM has Grown at 74.44%
-4What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,786.77
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.58%
NET SALES(Q)
Lowest at JPY 569,056 MM
Here's what is working for Kobe Steel, Ltd.
Net Profit
At JPY 41,943.03 MM has Grown at 74.44%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Raw Material Cost
Fallen by -5.91% (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 Kobe Steel, Ltd.
Interest Coverage Ratio
Lowest at 1,786.77
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at JPY 569,056 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Debtors Turnover Ratio
Lowest at 6.58%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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