Kohsai Co., Ltd. (7878) 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

NEW ART HOLDINGS Co., Ltd.

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Kohsai Co., Ltd.

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Estelle Holdings Co., Ltd.

Festaria Holdings Co., Ltd.

The Sailor Pen Co., Ltd.

Why is Kohsai Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.99%

The company has been able to generate a Return on Capital Employed (avg) of 3.99% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.62 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.62 times
The company has been able to generate a Return on Equity (avg) of 4.37% signifying low profitability per unit of shareholders funds

Negative results in Oct 25

INTEREST(HY) At JPY 6.97 MM has Grown at 76.18%
RAW MATERIAL COST(Y) Grown by 8.32% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 2.42 times

With ROCE of 5.89%, it has a expensive valuation with a 1.22 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 -6.30%, its profits have fallen by -44.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.30% 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 hold?

Overall Portfolio exposure to Kohsai Co., Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kohsai Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kohsai Co., Ltd.

-4.48%

-0.58

73.19%

Japan Nikkei 225

66.43%

2.73

25.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.74%

EBIT Growth (5y)

60.60%

EBIT to Interest (avg)

10.02

Debt to EBITDA (avg)

6.66

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

1.55

Tax Ratio

41.50%

Dividend Payout Ratio

40.68%

Pledged Shares

Institutional Holding

ROCE (avg)

3.99%

ROE (avg)

4.37%

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

1.33

EV to EBIT

20.74

EV to EBITDA

13.84

EV to Capital Employed

1.22

EV to Sales

0.68

PEG Ratio

Dividend Yield

ROCE (Latest)

5.89%

ROE (Latest)

4.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-11What is not working for the Company

INTEREST(HY)

At JPY 6.97 MM has Grown at 76.18%

RAW MATERIAL COST(Y)

Grown by 8.32% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.42 times

PRE-TAX PROFIT(Q)

At JPY 22.06 MM has Fallen at -34.08%

Here's what is working for Kohsai Co., Ltd.

Depreciation

Highest at JPY 19.09 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 19.09 MM has Grown at 28.58%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 6.97 MM has Grown at 76.18%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 22.06 MM has Fallen at -34.08%

over average net sales of the previous four periods of JPY 33.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 2.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 8.32% (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