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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Nagahori Corp.

Crossfor Co., Ltd.

Mitsubishi Pencil Co., Ltd.

Kohsai Co., Ltd.

Estelle Holdings Co., Ltd.

The Sailor Pen Co., Ltd.

Why is Kohsai Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.07%

The company has been able to generate a Return on Capital Employed (avg) of 3.07% 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 2.83 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.83 times
The company has been able to generate a Return on Equity (avg) of 3.88% signifying low profitability per unit of shareholders funds

Negative results in Apr 25

INTEREST(HY) At JPY 5.55 MM has Grown at 107.13%
NET PROFIT(HY) At JPY 38.15 MM has Grown at -55.36%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.55%

With ROCE of 8.13%, it has a very attractive valuation with a 1.05 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 -17.50%, its profits have risen by 0.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.50% 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 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 Gems, Jewellery And Watches)

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

Is Kohsai Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kohsai Co., Ltd.

-17.5%

-0.62

57.59%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.54%

EBIT Growth (5y)

7.66%

EBIT to Interest (avg)

10.02

Debt to EBITDA (avg)

6.66

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.55

Tax Ratio

41.50%

Dividend Payout Ratio

42.32%

Pledged Shares

Institutional Holding

ROCE (avg)

3.99%

ROE (avg)

3.88%

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

1.07

EV to EBIT

12.94

EV to EBITDA

9.22

EV to Capital Employed

1.05

EV to Sales

0.49

PEG Ratio

Dividend Yield

ROCE (Latest)

8.13%

ROE (Latest)

6.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.84% (YoY

OPERATING PROFIT(Q)

Highest at JPY 81.44 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.95 %

PRE-TAX PROFIT(Q)

At JPY 62.73 MM has Grown at 70.91%

NET PROFIT(Q)

At JPY 38.12 MM has Grown at 64.74%

-19What is not working for the Company

INTEREST(HY)

At JPY 5.55 MM has Grown at 107.13%

NET PROFIT(HY)

At JPY 38.15 MM has Grown at -55.36%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.55%

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

Operating Profit

Highest at JPY 81.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 7.95 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 62.73 MM has Grown at 70.91%

over average net sales of the previous four periods of JPY 36.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 38.12 MM has Grown at 64.74%

over average net sales of the previous four periods of JPY 23.14 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -7.84% (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 Kohsai Co., Ltd.

Interest

At JPY 2.95 MM has Grown at 13.25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 2.95 MM

in the last five periods and Increased by 13.25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 2.55%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio