Kuraray Co., Ltd. (3405) 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

JCU Corp.

Sanyo Chemical Industries Ltd.

Mitsui & Co., Ltd.

Asahi Kasei Corp.

Nippon Shokubai Co., Ltd.

Nippon Kayaku Co., Ltd.

Mitsui Chemicals, Inc.

KH Neochem Co., Ltd.

Nippon Soda Co., Ltd.

Mitsubishi Chemical Group Corp.

Kuraray Co., Ltd.

Why is Kuraray Co., Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 7.78% of over the last 5 years

With a fall in Net Sales of -6.34%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 2 consecutive quarters
ROCE(HY) Lowest at 2%
INTEREST COVERAGE RATIO(Q) Lowest at 4,570.28
RAW MATERIAL COST(Y) Grown by 6.1% (YoY)

Below par performance in long term as well as near term

Along with generating -29.76% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kuraray Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Kuraray Co., Ltd.

-29.76%

384.32

32.11%

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)

7.75%

EBIT Growth (5y)

7.78%

EBIT to Interest (avg)

37.70

Debt to EBITDA (avg)

1.17

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

0.80

Tax Ratio

48.64%

Dividend Payout Ratio

56.06%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

9.03%

ROE (avg)

7.27%

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

0.79

EV to EBIT

9.78

EV to EBITDA

4.63

EV to Capital Employed

0.83

EV to Sales

0.88

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

8.46%

ROE (Latest)

5.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly 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

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 424.35%

-23What is not working for the Company

ROCE(HY)

Lowest at 2%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,570.28

RAW MATERIAL COST(Y)

Grown by 6.1% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.21%

OPERATING PROFIT(Q)

Lowest at JPY 29,524 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.39 %

PRE-TAX PROFIT(Q)

Lowest at JPY 4,095 MM

NET PROFIT(Q)

Lowest at JPY 1,811.11 MM

Here's what is working for Kuraray Co., Ltd.

Dividend Payout Ratio

Highest at 424.35%

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 Kuraray Co., Ltd.

Pre-Tax Profit

At JPY 4,095 MM has Fallen at -70.48%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,811.11 MM has Fallen at -79.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 4,570.28

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 29,524 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 14.39 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 4,095 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 1,811.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 2.21%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6.1% (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