Kohnan Shoji Co., Ltd. (7516) 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

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Kohnan Shoji Co., Ltd.

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Why is Kohnan Shoji Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 4.50% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 4.50% of over the last 5 years

With a fall in Net Sales of -6.11%, the company declared Very Negative results in Nov 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At JPY 1,400 MM has Grown at 21.11%
ROCE(HY) Lowest at 8.02%
INTEREST COVERAGE RATIO(Q) Lowest at 1,168.07

Underperformed the market in the last 1 year

The stock has generated a return of 8.71% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

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 Furniture, Home Furnishing)

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

Is Kohnan Shoji Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kohnan Shoji Co., Ltd.

8.71%

-0.19

18.32%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.00%

EBIT Growth (5y)

4.50%

EBIT to Interest (avg)

11.16

Debt to EBITDA (avg)

3.41

Net Debt to Equity (avg)

1.04

Sales to Capital Employed (avg)

1.46

Tax Ratio

33.20%

Dividend Payout Ratio

20.30%

Pledged Shares

Institutional Holding

ROCE (avg)

8.75%

ROE (avg)

11.01%

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

0.77

EV to EBIT

11.99

EV to EBITDA

7.17

EV to Capital Employed

0.89

EV to Sales

0.60

PEG Ratio

1.35

Dividend Yield

ROCE (Latest)

7.39%

ROE (Latest)

9.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.89% (YoY

CASH AND EQV(HY)

Highest at JPY 33,976 MM

-22What is not working for the Company

INTEREST(HY)

At JPY 1,400 MM has Grown at 21.11%

ROCE(HY)

Lowest at 8.02%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,168.07

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.19 times

OPERATING PROFIT(Q)

Lowest at JPY 8,305 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.59 %

PRE-TAX PROFIT(Q)

Lowest at JPY 3,122 MM

NET PROFIT(Q)

Lowest at JPY 2,058.2 MM

EPS(Q)

Lowest at JPY 77.44

Here's what is working for Kohnan Shoji Co., Ltd.

Cash and Eqv

Highest at JPY 33,976 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.89% (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

Depreciation

Highest at JPY 4,507 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Kohnan Shoji Co., Ltd.

Interest

At JPY 1,400 MM has Grown at 21.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,168.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 3,122 MM has Fallen at -42.83%

over average net sales of the previous four periods of JPY 5,461.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,058.2 MM has Fallen at -44.13%

over average net sales of the previous four periods of JPY 3,683.93 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 8,305 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 6.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 3,122 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 2,058.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 77.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 2.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio