Kumiai Chemical Industry Co., Ltd. (4996) 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

Nihon Nohyaku Co., Ltd.

Hokko Chemical Industry Co., Ltd.

OAT Agrio Co., Ltd.

Agro-Kanesho Co., Ltd.

Kumiai Chemical Industry Co., Ltd.

Fumakilla Ltd.

Katakura & Co-Op Agri Corp.

Why is Kumiai Chemical Industry Co., Ltd. ?

Healthy long term growth as Net Sales has grown by an annual rate of 9.91% and Operating profit at 11.69%

The company has declared Negative results for the last 6 consecutive quarters

PRE-TAX PROFIT(Q) At JPY 3,259 MM has Fallen at -65.28%
NET PROFIT(Q) At JPY 2,184.78 MM has Fallen at -68.98%
ROCE(HY) Lowest at 7.21%

With ROCE of 6.04%, it has a very attractive valuation with a 0.82 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 -13.18%, its profits have fallen by -10.3%
At the current price, the company has a high dividend yield of 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.18% 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 Kumiai Chemical Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Kumiai Chemical Industry Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kumiai Chemical Industry Co., Ltd.

-12.42%

-0.45

23.45%

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)

9.91%

EBIT Growth (5y)

11.69%

EBIT to Interest (avg)

54.27

Debt to EBITDA (avg)

1.90

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.81

Tax Ratio

16.43%

Dividend Payout Ratio

30.11%

Pledged Shares

Institutional Holding

ROCE (avg)

7.86%

ROE (avg)

11.56%

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

0.75

EV to EBIT

13.60

EV to EBITDA

9.18

EV to Capital Employed

0.82

EV to Sales

1.02

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

6.04%

ROE (Latest)

11.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 53.02%

NET SALES(Q)

Highest at JPY 52,796 MM

-25What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 3,259 MM has Fallen at -65.28%

NET PROFIT(Q)

At JPY 2,184.78 MM has Fallen at -68.98%

ROCE(HY)

Lowest at 7.21%

RAW MATERIAL COST(Y)

Grown by 12.2% (YoY

INTEREST(Q)

Highest at JPY 175 MM

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

Net Sales

Highest at JPY 52,796 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Dividend Payout Ratio

Highest at 53.02%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Kumiai Chemical Industry Co., Ltd.

Pre-Tax Profit

At JPY 3,259 MM has Fallen at -65.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,184.78 MM has Fallen at -68.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 175 MM has Grown at 14.38%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 175 MM

in the last five periods and Increased by 14.38% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 12.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales