ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Kowa Co. Ltd. (Osaka) ?
1
High Management Efficiency with a high ROE of 24.44%
2
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 24.44%
3
Healthy long term growth as Operating profit has grown by an annual rate 39.86%
4
Flat results in Nov 25
- NET PROFIT(9M) At JPY 322.38 MM has Grown at -35.9%
- ROCE(HY) Lowest at 14.48%
5
With ROE of 13.07%, it has a attractive valuation with a 1.33 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 1.75%, its profits have fallen by -44.6%
6
Underperformed the market in the last 1 year
- The stock has generated a return of 1.75% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.82%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kowa Co. Ltd. (Osaka) should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kowa Co. Ltd. (Osaka) for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kowa Co. Ltd. (Osaka)
1.75%
-2.17
17.19%
Japan Nikkei 225
66.43%
2.73
25.54%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.17%
EBIT Growth (5y)
39.86%
EBIT to Interest (avg)
31.37
Debt to EBITDA (avg)
0.12
Net Debt to Equity (avg)
-0.43
Sales to Capital Employed (avg)
1.95
Tax Ratio
35.53%
Dividend Payout Ratio
8.28%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
33.78%
ROE (avg)
24.44%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.33
EV to EBIT
3.84
EV to EBITDA
2.86
EV to Capital Employed
1.68
EV to Sales
0.41
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
43.91%
ROE (Latest)
13.07%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -46.87 %
RAW MATERIAL COST(Y)
Fallen by 1.09% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.34 times
-4What is not working for the Company
NET PROFIT(9M)
At JPY 322.38 MM has Grown at -35.9%
ROCE(HY)
Lowest at 14.48%
Here's what is working for Kowa Co. Ltd. (Osaka)
Debt-Equity Ratio
Lowest at -46.87 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 6.34 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 1.09% (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 Kowa Co. Ltd. (Osaka)
Net Profit
At JPY 322.38 MM has Grown at -35.9%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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