KOKUYO CO., LTD. (7984) 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

Uchida Yoko Co., Ltd.

Okamura Corp.

Itoki Corp.

Yagami Inc.

KOKUYO CO., LTD.

King Jim Co., Ltd.

Pilot Corp.

AuBEX Corp.

Takano Co., Ltd.

Imura & Co. Ltd.

LIHIT LAB., INC.

Why is KOKUYO CO., LTD. ?

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

Poor long term growth as Net Sales has grown by an annual rate of 1.25% over the last 5 years

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at JPY 14,369 MM
PRE-TAX PROFIT(Q) At JPY 7,398 MM has Fallen at -51.6%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.57 times

With ROE of 8.71%, it has a very attractive valuation with a 1.42 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 13.49%, its profits have fallen by -3.5% ; the PEG ratio of the company is 12.6
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 13.49% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to KOKUYO CO., LTD. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is KOKUYO CO., LTD. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

KOKUYO CO., LTD.

-100.0%

-0.88

79.45%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.25%

EBIT Growth (5y)

6.46%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

1.26

Tax Ratio

36.02%

Dividend Payout Ratio

40.07%

Pledged Shares

Institutional Holding

ROCE (avg)

13.66%

ROE (avg)

7.42%

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

1.42

EV to EBIT

10.84

EV to EBITDA

8.01

EV to Capital Employed

1.75

EV to Sales

0.76

PEG Ratio

12.62

Dividend Yield

0.03%

ROCE (Latest)

16.13%

ROE (Latest)

8.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 4.57

RAW MATERIAL COST(Y)

Fallen by -1.8% (YoY

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 14,369 MM

PRE-TAX PROFIT(Q)

At JPY 7,398 MM has Fallen at -51.6%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.57 times

OPERATING PROFIT MARGIN(Q)

Lowest at 7.08 %

NET PROFIT(Q)

Fallen at -38.3%

Here's what is working for KOKUYO CO., LTD.

Dividend per share

Highest at JPY 4.57 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -1.8% (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 KOKUYO CO., LTD.

Operating Cash Flow

Lowest at JPY 14,369 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Pre-Tax Profit

At JPY 7,398 MM has Fallen at -51.6%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Profit Margin

Lowest at 7.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -38.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 4.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio