Kurimoto Ltd. (5602) 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

Okaya & Co., Ltd.

Yodogawa Steel Works, Ltd.

Aichi Steel Corp.

Kurimoto Ltd.

Kyoei Steel Ltd.

Godo Steel, Ltd.

OSAKA STEEL CO., LTD.

Nippon Yakin Kogyo Co., Ltd.

Nakayama Steel Works, Ltd.

Sanyo Special Steel Co., Ltd.

Chubu Steel Plate Co., Ltd.

Why is Kurimoto Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 38.79

Poor long term growth as Net Sales has grown by an annual rate of 2.88% over the last 5 years

Negative results in Jun 25

INTEREST(HY) At JPY 132 MM has Grown at 158.82%
INTEREST COVERAGE RATIO(Q) Lowest at 2,949.21
CASH AND EQV(HY) Lowest at JPY 37,615 MM

With ROE of 7.43%, it has a very attractive valuation with a 0.81 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 84.51%, its profits have risen by 19.1% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 84.51% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 38.59%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kurimoto Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Kurimoto Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kurimoto Ltd.

-100.0%

-0.73

88.42%

Japan Nikkei 225

38.59%

1.45

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.88%

EBIT Growth (5y)

12.81%

EBIT to Interest (avg)

38.79

Debt to EBITDA (avg)

0.22

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.27

Tax Ratio

26.86%

Dividend Payout Ratio

50.05%

Pledged Shares

Institutional Holding

ROCE (avg)

8.20%

ROE (avg)

6.18%

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

0.81

EV to EBIT

9.45

EV to EBITDA

6.88

EV to Capital Employed

0.82

EV to Sales

0.59

PEG Ratio

0.57

Dividend Yield

0.01%

ROCE (Latest)

8.68%

ROE (Latest)

7.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

12What is working for the Company

ROCE(HY)

Highest at 8.85%

PRE-TAX PROFIT(Q)

At JPY 2,244 MM has Grown at 122.4%

RAW MATERIAL COST(Y)

Fallen by -5.98% (YoY

NET PROFIT(Q)

At JPY 1,559 MM has Grown at 95.12%

-13What is not working for the Company

INTEREST(HY)

At JPY 132 MM has Grown at 158.82%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,949.21

CASH AND EQV(HY)

Lowest at JPY 37,615 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.71%

NET SALES(Q)

Lowest at JPY 27,433 MM

Here's what is working for Kurimoto Ltd.

Pre-Tax Profit

At JPY 2,244 MM has Grown at 122.4%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,559 MM has Grown at 95.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -5.98% (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 Kurimoto Ltd.

Interest

At JPY 132 MM has Grown at 158.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,949.21

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 27,433 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 37,615 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.71%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.54 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income