Konishi Co., Ltd. (4956) 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

LINTEC Corp.

Nitta Corp.

C. Uyemura & Co., Ltd.

Nihon Parkerizing Co., Ltd.

Fujimi, Inc.

artience Co. Ltd.

Aica Kogyo Co., Ltd.

Konishi Co., Ltd.

SK Kaken Co., Ltd.

KeePer Technical Laboratory Co., Ltd.

Toyo Tanso Co., Ltd.

Why is Konishi 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 0.10% and Operating profit at 8.31% over the last 5 years

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 57,120
CASH AND EQV(HY) Lowest at JPY 41,125 MM
DEBT-EQUITY RATIO (HY) Highest at -23.02 %

With ROE of 9.51%, it has a very attractive valuation with a 0.89 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 -1.87%, its profits have risen by 5.9% ; the PEG ratio of the company is 1.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.87% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Konishi Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Konishi Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Konishi Co., Ltd.

-2.4%

0.25

25.34%

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)

0.10%

EBIT Growth (5y)

8.31%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.62

Tax Ratio

28.72%

Dividend Payout Ratio

31.40%

Pledged Shares

Institutional Holding

ROCE (avg)

17.09%

ROE (avg)

9.72%

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

0.89

EV to EBIT

5.27

EV to EBITDA

4.36

EV to Capital Employed

0.86

EV to Sales

0.41

PEG Ratio

1.58

Dividend Yield

ROCE (Latest)

16.25%

ROE (Latest)

9.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.28% (YoY

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 57,120

CASH AND EQV(HY)

Lowest at JPY 41,125 MM

DEBT-EQUITY RATIO (HY)

Highest at -23.02 %

NET SALES(Q)

Lowest at JPY 32,241 MM

INTEREST(Q)

Highest at JPY 5 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 2,258 MM

Here's what is working for Konishi Co., Ltd.

Raw Material Cost

Fallen by -4.28% (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 730 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 Konishi Co., Ltd.

Interest

At JPY 5 MM has Grown at 25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 57,120

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 32,241 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 5 MM

in the last five periods and Increased by 25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 2,258 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Cash and Eqv

Lowest at JPY 41,125 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -23.02 %

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