ScoreWhy is Kuraray Co., Ltd. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 37.70
2
Poor long term growth as Operating profit has grown by an annual rate 7.78% of over the last 5 years
3
Flat results in Dec 25
- ROCE(HY) Lowest at 0.99%
- INTEREST COVERAGE RATIO(Q) Lowest at 4,435.93
- INVENTORY TURNOVER RATIO(HY) Lowest at 2.14 times
4
With ROCE of 8.46%, it has a very attractive valuation with a 0.83 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 -15.64%, its profits have fallen by -27.1%
- At the current price, the company has a high dividend yield of 0.1
5
Majority shareholders : FIIs
6
Below par performance in long term as well as near term
- Along with generating -15.64% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Kuraray 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 Kuraray Co., Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Kuraray Co., Ltd.
-15.64%
423.63
29.88%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality 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)
0.79
Tax Ratio
48.64%
Dividend Payout Ratio
56.06%
Pledged Shares
0
Institutional Holding
0.04%
ROCE (avg)
9.03%
ROE (avg)
7.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
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
NA
Dividend Yield
0.06%
ROCE (Latest)
8.46%
ROE (Latest)
5.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
PRE-TAX PROFIT(Q)
At JPY 17,021 MM has Grown at 198.72%
RAW MATERIAL COST(Y)
Fallen by -2.16% (YoY
NET SALES(Q)
Highest at JPY 215,023 MM
NET PROFIT(Q)
Highest at JPY 18,817 MM
-13What is not working for the Company
ROCE(HY)
Lowest at 0.99%
INTEREST COVERAGE RATIO(Q)
Lowest at 4,435.93
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.14 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.71 times
INTEREST(Q)
Highest at JPY 782 MM
EPS(Q)
Lowest at JPY -47.74
Here's what is working for Kuraray Co., Ltd.
Net Profit
At JPY 18,817 MM has Grown at 568.45%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Pre-Tax Profit
At JPY 17,021 MM has Grown at 198.72%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Sales
Highest at JPY 215,023 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Profit
Highest at JPY 18,817 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Raw Material Cost
Fallen by -2.16% (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 22,164 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 22,164 MM has Grown at 28.66%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for Kuraray Co., Ltd.
Interest Coverage Ratio
Lowest at 4,435.93
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 782 MM
in the last five periods and Increased by 8.91% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
EPS
Lowest at JPY -47.74
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Lowest at 2.14 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 4.71 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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