Kureha Corp. (4023) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DIC Corp.

OSAKA SODA CO., LTD.

Japan Material Co., Ltd.

Denka Co., Ltd.

Kaneka Corp.

Nifco, Inc.

Daicel Corp.

Toagosei Co., Ltd.

UBE Corp.

Tokuyama Corp.

Kureha Corp.

Why is Kureha Corp. ?

Weak Long Term Fundamental Strength with a 2.04% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 2.04% over the last 5 years

ROCE(HY) Lowest at -5.71%
DEBT-EQUITY RATIO (HY) Highest at 57.19 %
INTEREST COVERAGE RATIO(Q) Lowest at 2,144.92

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 27.56%, its profits have risen by 31.5% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 27.56% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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 Specialty Chemicals)

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

Is Kureha Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Kureha Corp.

27.56%

2.10

27.06%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.04%

EBIT Growth (5y)

-7.74%

EBIT to Interest (avg)

56.22

Debt to EBITDA (avg)

1.44

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.59

Tax Ratio

39.79%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.88%

ROE (avg)

6.15%

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

1.06

EV to EBIT

26.41

EV to EBITDA

12.30

EV to Capital Employed

1.04

EV to Sales

1.81

PEG Ratio

0.42

Dividend Yield

ROCE (Latest)

3.93%

ROE (Latest)

5.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -24.04% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.58 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.88

NET SALES(Q)

Highest at JPY 43,925 MM

-34What is not working for the Company

ROCE(HY)

Lowest at -5.71%

DEBT-EQUITY RATIO (HY)

Highest at 57.19 %

INTEREST COVERAGE RATIO(Q)

Lowest at 2,144.92

INTEREST(Q)

Highest at JPY 236 MM

PRE-TAX PROFIT(Q)

Lowest at JPY -32,062 MM

NET PROFIT(Q)

Lowest at JPY -20,927 MM

EPS(Q)

Lowest at JPY -547.56

Here's what is working for Kureha Corp.

Net Sales

Highest at JPY 43,925 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 2.58 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 4.88

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -24.04% (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 Kureha Corp.

Pre-Tax Profit

At JPY -32,062 MM has Fallen at -1,156.32%

over average net sales of the previous four periods of JPY 3,035.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -20,927 MM has Fallen at -942.22%

over average net sales of the previous four periods of JPY 2,484.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 236 MM has Grown at 20.41%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,144.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 57.19 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at JPY 236 MM

in the last five periods and Increased by 20.41% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY -32,062 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 -20,927 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -547.56

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)