Koito Manufacturing Co., Ltd. (7276) 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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Koito Manufacturing Co., Ltd.

Why is Koito Manufacturing Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.74% and Operating profit at -11.45% over the last 5 years

Flat results in Dec 25

INVENTORY TURNOVER RATIO(HY) Lowest at 8.31 times
CASH AND EQV(HY) Lowest at JPY 540,403 MM
DEBT-EQUITY RATIO (HY) Highest at -41.63 %

With ROE of 6.51%, it has a very attractive valuation with a 0.86 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 24.66%, its profits have fallen by -20.2%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 24.66% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%

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 Auto Components & Equipments)

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

Is Koito Manufacturing Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Koito Manufacturing Co., Ltd.

24.66%

0.60

27.38%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.74%

EBIT Growth (5y)

-11.45%

EBIT to Interest (avg)

90.52

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

1.41

Tax Ratio

21.24%

Dividend Payout Ratio

35.78%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

16.30%

ROE (avg)

7.16%

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

0.86

EV to EBIT

6.02

EV to EBITDA

3.05

EV to Capital Employed

0.76

EV to Sales

0.29

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

12.58%

ROE (Latest)

6.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 96,897 MM

RAW MATERIAL COST(Y)

Fallen by -12.02% (YoY

NET SALES(Q)

Highest at JPY 243,154 MM

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.31 times

CASH AND EQV(HY)

Lowest at JPY 540,403 MM

DEBT-EQUITY RATIO (HY)

Highest at -41.63 %

Here's what is working for Koito Manufacturing Co., Ltd.

Operating Cash Flow

Highest at JPY 96,897 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 243,154 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -12.02% (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 12,134 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 Koito Manufacturing Co., Ltd.

Inventory Turnover Ratio

Lowest at 8.31 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Cash and Eqv

Lowest at JPY 540,403 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -41.63 %

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