Why is Koito Manufacturing Co., Ltd. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 90.52
2
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
3
Flat results in Jun 25
4
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 13.66%, its profits have fallen by -20.2%
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 13.66% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
How much should you hold?
- Overall Portfolio exposure to Koito Manufacturing Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Koito Manufacturing Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Koito Manufacturing Co., Ltd.
13.66%
0.14
25.93%
Japan Nikkei 225
28.54%
1.11
25.75%
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)
0
Net Debt to Equity (avg)
-0.43
Sales to Capital Employed (avg)
1.40
Tax Ratio
21.24%
Dividend Payout Ratio
35.78%
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
16.30%
ROE (avg)
7.16%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
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
NA
Dividend Yield
0.03%
ROCE (Latest)
12.58%
ROE (Latest)
6.51%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 97,986 MM
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
ROCE(HY)
Highest at 7.57%
RAW MATERIAL COST(Y)
Fallen by -32.19% (YoY
NET PROFIT(9M)
Higher at JPY 34,747.52 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Koito Manufacturing Co., Ltd.
Operating Cash Flow
Highest at JPY 97,986 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Profit
Higher at JPY 34,747.52 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by -32.19% (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






