KOMATSU MATERE Co., Ltd. (3580) 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

Seiren Co., Ltd.

Transaction Co., Ltd.

Sumitomo Seika Chemicals Co., Ltd.

KURABO INDUSTRIES LTD.

Fujibo Holdings, Inc.

KOMATSU MATERE Co., Ltd.

The Japan Wool Textile Co., Ltd.

Toray Industries, Inc.

Sankyo Seiko Co., Ltd.

Nitto Boseki Co., Ltd.

Teijin Ltd.

Why is KOMATSU MATERE 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 1.59% and Operating profit at 5.66% over the last 5 years

The company declared negative results in Mar'25 after positive results in Dec'24

INTEREST(9M) At JPY 4 MM has Grown at inf%
NET PROFIT(HY) At JPY 956.17 MM has Grown at -37.26%
DEBT-EQUITY RATIO (HY) Highest at -27.1 %

With ROE of 7.55%, it has a very attractive valuation with a 0.80 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 3.68%, its profits have risen by 66.5% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 3.68% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to KOMATSU MATERE Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is KOMATSU MATERE Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

KOMATSU MATERE Co., Ltd.

1.52%

0.47

24.10%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.59%

EBIT Growth (5y)

5.66%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.98

Tax Ratio

22.70%

Dividend Payout Ratio

34.06%

Pledged Shares

Institutional Holding

ROCE (avg)

6.72%

ROE (avg)

5.91%

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

0.80

EV to EBIT

8.48

EV to EBITDA

5.20

EV to Capital Employed

0.69

EV to Sales

0.46

PEG Ratio

0.16

Dividend Yield

0.07%

ROCE (Latest)

8.13%

ROE (Latest)

7.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.7% (YoY

CASH AND EQV(HY)

Highest at JPY 24,603 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.57%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.46%

OPERATING PROFIT(Q)

Highest at JPY 1,120 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.13 %

-7What is not working for the Company

INTEREST(9M)

At JPY 4 MM has Grown at inf%

NET PROFIT(HY)

At JPY 956.17 MM has Grown at -37.26%

DEBT-EQUITY RATIO (HY)

Highest at -27.1 %

Here's what is working for KOMATSU MATERE Co., Ltd.

Operating Profit

Highest at JPY 1,120 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 11.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 24,603 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 6.57%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.46%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.7% (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 KOMATSU MATERE Co., Ltd.

Interest

At JPY 4 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 956.17 MM has Grown at -37.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -27.1 %

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