KOIKE-YA, Inc. (2226) 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

Kotobuki Spirits Co., Ltd.

Gift Holdings, Inc.

WARABEYA NICHIYO HOLDINGS Co., Ltd.

Riken Vitamin Co., Ltd.

Nitto Fuji Flour Milling Co., Ltd.

KOIKE-YA, Inc.

Bourbon Corp. (Japan)

Key Coffee, Inc.

Fujicco Co., Ltd.

Takasago International Corp.

Fujiya Co., Ltd.

Why is KOIKE-YA, Inc. ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 11.26% and Operating profit at 34.90%

The company has declared Negative results for the last 6 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 4,045.24
DIVIDEND PAYOUT RATIO(Y) Lowest at 62.35%
DEBT-EQUITY RATIO (HY) Highest at 37.05 %

With ROE of 13.35%, it has a fair valuation with a 2.46 Price to Book Value

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 -1.47%, its profits have fallen by -7.3%

Below par performance in long term as well as near term

Along with generating -1.47% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to KOIKE-YA, Inc. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is KOIKE-YA, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

KOIKE-YA, Inc.

-100.0%

0.98

8.00%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.26%

EBIT Growth (5y)

34.90%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

2.68

Tax Ratio

24.87%

Dividend Payout Ratio

22.65%

Pledged Shares

Institutional Holding

ROCE (avg)

17.50%

ROE (avg)

10.59%

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

2.46

EV to EBIT

15.33

EV to EBITDA

11.00

EV to Capital Employed

2.20

EV to Sales

0.89

PEG Ratio

Dividend Yield

ROCE (Latest)

14.38%

ROE (Latest)

13.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly 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

4What is working for the Company

OPERATING PROFIT(Q)

Highest at JPY 1,699 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.65 %

NET PROFIT(Q)

Highest at JPY 963.96 MM

EPS(Q)

Highest at JPY 88.21

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,045.24

DIVIDEND PAYOUT RATIO(Y)

Lowest at 62.35%

DEBT-EQUITY RATIO (HY)

Highest at 37.05 %

INTEREST(Q)

Highest at JPY 42 MM

Here's what is working for KOIKE-YA, Inc.

Operating Profit

Highest at JPY 1,699 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 11.65 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at JPY 963.96 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 88.21

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 533 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 533 MM has Grown at 35.62%

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 KOIKE-YA, Inc.

Interest

At JPY 42 MM has Grown at 147.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 4,045.24

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 42 MM

in the last five periods and Increased by 147.06% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 37.05 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 62.35%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)