Konoshima Chemical Co., Ltd. (4026) 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

Yagi & Co., Ltd.

Nanyo Corp.

Toell Co., Ltd.

Narasaki Sangyo Co., Ltd.

Fuji Kosan Co., Ltd.

Zaoh Co., Ltd.

Toba, Inc.

Konoshima Chemical Co., Ltd.

sanwacompany ltd.

UEX, Ltd.

Ozu Corp.

Why is Konoshima Chemical Co., Ltd. ?

High Management Efficiency with a high ROCE of 12.35%

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.75% over the last 5 years
The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.75% over the last 5 years

Positive results in Jan 26

OPERATING PROFIT(Q) Highest at JPY 1,178 MM
PRE-TAX PROFIT(Q) Highest at JPY 654 MM
RAW MATERIAL COST(Y) Fallen by -21.19% (YoY)

With ROCE of 10.80%, it has a very attractive valuation with a 1.21 Enterprise value to Capital Employed

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 36.02%, its profits have fallen by -1%
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 36.02% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Konoshima Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Konoshima Chemical Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Konoshima Chemical Co., Ltd.

31.28%

0.52

44.61%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.75%

EBIT Growth (5y)

12.87%

EBIT to Interest (avg)

33.46

Debt to EBITDA (avg)

1.64

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

1.20

Tax Ratio

14.61%

Dividend Payout Ratio

27.82%

Pledged Shares

Institutional Holding

ROCE (avg)

12.35%

ROE (avg)

13.32%

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

1.32

EV to EBIT

11.21

EV to EBITDA

6.05

EV to Capital Employed

1.21

EV to Sales

0.94

PEG Ratio

Dividend Yield

ROCE (Latest)

10.80%

ROE (Latest)

11.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

10What is working for the Company

OPERATING PROFIT(Q)

Highest at JPY 1,178 MM

PRE-TAX PROFIT(Q)

Highest at JPY 654 MM

RAW MATERIAL COST(Y)

Fallen by -21.19% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 50.61 %

NET SALES(Q)

Highest at JPY 6,966 MM

NET PROFIT(Q)

Highest at JPY 471 MM

EPS(Q)

Highest at JPY 51.67

-8What is not working for the Company

INTEREST(HY)

At JPY 67 MM has Grown at 21.82%

Here's what is working for Konoshima Chemical Co., Ltd.

Operating Profit

Highest at JPY 1,178 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 654 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

Highest at JPY 6,966 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 654 MM has Grown at 98.78%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 471 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 51.67

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 50.61 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -21.19% (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

Depreciation

Highest at JPY 494 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 Konoshima Chemical Co., Ltd.

Interest

At JPY 67 MM has Grown at 21.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)