KOSÉ Corp. (4922) 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

Noevir Holdings Co., Ltd.

Lion Corp.

Kao Corp.

Rohto Pharmaceutical Co., Ltd.

Pigeon Corp.

Pola Orbis Holdings, Inc.

KOSÉ Corp.

Milbon Co., Ltd.

Unicharm Corp.

FANCL Corp.

Shiseido Co., Ltd.

Why is KOSÉ Corp. ?

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 -0.61% and Operating profit at -19.58% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at 1.09%
INTEREST COVERAGE RATIO(Q) Lowest at 45,647.06
PRE-TAX PROFIT(Q) At JPY 4,501 MM has Fallen at -46.49%

With ROE of 2.98%, it has a very attractive valuation with a 1.34 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 -24.75%, its profits have fallen by -49.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.75% 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 KOSÉ Corp. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is KOSÉ Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

KOSÉ Corp.

-24.75%

-1.34

36.96%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.61%

EBIT Growth (5y)

-19.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.15

Tax Ratio

52.74%

Dividend Payout Ratio

106.37%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

16.10%

ROE (avg)

6.91%

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

1.34

EV to EBIT

16.35

EV to EBITDA

9.66

EV to Capital Employed

1.53

EV to Sales

0.82

PEG Ratio

Dividend Yield

ROCE (Latest)

9.35%

ROE (Latest)

2.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

4What is working for the Company

NET PROFIT(HY)

Higher at JPY 7,097 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 221.46%

RAW MATERIAL COST(Y)

Fallen by 0.9% (YoY

-26What is not working for the Company

ROCE(HY)

Lowest at 1.09%

INTEREST COVERAGE RATIO(Q)

Lowest at 45,647.06

PRE-TAX PROFIT(Q)

At JPY 4,501 MM has Fallen at -46.49%

NET PROFIT(Q)

At JPY 1,804 MM has Fallen at -61.35%

DEBT-EQUITY RATIO (HY)

Highest at -30.08 %

INTEREST(Q)

Highest at JPY 17 MM

Here's what is working for KOSÉ Corp.

Dividend Payout Ratio

Highest at 221.46%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.9% (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 KOSÉ Corp.

Interest

At JPY 17 MM has Grown at 13.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 45,647.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 4,501 MM has Fallen at -46.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,804 MM has Fallen at -61.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 17 MM

in the last five periods and Increased by 13.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -30.08 %

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