ScoreWhy is Kobe Steel, Ltd. ?
1
Poor Management Efficiency with a low ROCE of 6.61%
- The company has been able to generate a Return on Capital Employed (avg) of 6.61% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 9.30% signifying low profitability per unit of shareholders funds
3
Flat results in Mar 26
- NET PROFIT(HY) At JPY 55,878.77 MM has Grown at -40.99%
- ROCE(HY) Lowest at 7.74%
- CASH AND EQV(HY) Lowest at JPY 410,868 MM
4
With ROCE of 7.15%, it has a very attractive valuation with a 0.78 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 20.68%, its profits have risen by 13.3% ; the PEG ratio of the company is 0.4
- At the current price, the company has a high dividend yield of 0
5
Majority shareholders : FIIs
6
Underperformed the market in the last 1 year
- The stock has generated a return of 20.68% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
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.
20.68%
1367.17
24.43%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.68%
EBIT Growth (5y)
131.33%
EBIT to Interest (avg)
7.98
Debt to EBITDA (avg)
3.46
Net Debt to Equity (avg)
0.58
Sales to Capital Employed (avg)
1.30
Tax Ratio
14.38%
Dividend Payout Ratio
32.82%
Pledged Shares
0
Institutional Holding
0.08%
ROCE (avg)
6.61%
ROE (avg)
9.30%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
0.67
EV to EBIT
10.88
EV to EBITDA
5.54
EV to Capital Employed
0.78
EV to Sales
0.57
PEG Ratio
0.44
Dividend Yield
NA
ROCE (Latest)
7.15%
ROE (Latest)
11.54%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -5.17% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 48.09 %
OPERATING PROFIT(Q)
Highest at JPY 67,384 MM
-9What is not working for the Company
NET PROFIT(HY)
At JPY 55,878.77 MM has Grown at -40.99%
ROCE(HY)
Lowest at 7.74%
CASH AND EQV(HY)
Lowest at JPY 410,868 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.9 times
EPS(Q)
Lowest at JPY 23.73
Here's what is working for Kobe Steel, Ltd.
Operating Profit
Highest at JPY 67,384 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Debt-Equity Ratio
Lowest at 48.09 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -5.17% (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.
Net Profit
At JPY 55,878.77 MM has Grown at -40.99%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 23.73
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Cash and Eqv
Lowest at JPY 410,868 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 5.9 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at JPY 0.94 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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