ktk, Inc. (3035) 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

Takashima & Co., Ltd.

Muraki Corp.

ktk, Inc.

IBOKIN Co., Ltd.

Tohoku Chemical Co., Ltd.

Heiwa Paper Co., Ltd.

Kyodo Paper Holdings Co., Ltd.

Alpha Group, Inc.

Saftec Co., Ltd.

Ota Floriculture Auction Co., Ltd.

Altech Co., Ltd.

Why is ktk, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 60.21

Poor long term growth as Net Sales has grown by an annual rate of 1.96% over the last 5 years

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

ROCE(HY) Lowest at 7.72%
INTEREST(Q) At JPY 3.15 MM has Grown at 21.04%
INVENTORY TURNOVER RATIO(HY) Lowest at 16.8%

With ROE of 7.50%, it has a very attractive valuation with a 0.83 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 14.39%, its profits have risen by 3.5% ; the PEG ratio of the company is 3.2

Underperformed the market in the last 1 year

The stock has generated a return of 14.39% 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 ktk, Inc. 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 ktk, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ktk, Inc.

14.42%

-0.19

27.00%

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)

1.96%

EBIT Growth (5y)

5.60%

EBIT to Interest (avg)

60.73

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

3.36

Tax Ratio

36.93%

Dividend Payout Ratio

25.20%

Pledged Shares

Institutional Holding

ROCE (avg)

13.29%

ROE (avg)

8.20%

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

0.83

EV to EBIT

5.44

EV to EBITDA

4.00

EV to Capital Employed

0.75

EV to Sales

0.12

PEG Ratio

3.19

Dividend Yield

ROCE (Latest)

13.87%

ROE (Latest)

7.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.72% (YoY

CASH AND EQV(HY)

Highest at JPY 5,367.68 MM

DEBT-EQUITY RATIO (HY)

Lowest at -32.34 %

NET SALES(Q)

Highest at JPY 4,922.94 MM

PRE-TAX PROFIT(Q)

Highest at JPY 199 MM

NET PROFIT(Q)

Highest at JPY 127.61 MM

EPS(Q)

Highest at JPY 23.39

-14What is not working for the Company

ROCE(HY)

Lowest at 7.72%

INTEREST(Q)

At JPY 3.15 MM has Grown at 21.04%

INVENTORY TURNOVER RATIO(HY)

Lowest at 16.8%

Here's what is working for ktk, Inc.

Net Sales

Highest at JPY 4,922.94 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 199 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 127.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 23.39

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 5,367.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -32.34 %

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 0.72% (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 38.01 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 ktk, Inc.

Interest

At JPY 3.15 MM has Grown at 21.04%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 3.15 MM

in the last five periods and Increased by 21.04% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 16.8%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio