Kurita Water Industries Ltd. (6370) 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

Sumitomo Riko Co. Ltd.

TAKUMA CO., LTD.

Fujikura Composite, Inc.

Nichirin Co., Ltd.

Chiyoda Integre Co., Ltd.

Nippon Pillar Packing Co., Ltd.

Teikoku Sen-I Co., Ltd.

Fukoku Co., Ltd.

Kurita Water Industries Ltd.

FP Corp.

LEC, Inc. (Japan)

Why is Kurita Water Industries Ltd. ?

Flat results in Mar 26

INVENTORY TURNOVER RATIO(HY) Lowest at 12.16 times
DEBTORS TURNOVER RATIO(HY) Lowest at 2.96 times
INTEREST(Q) Highest at JPY 665 MM

With ROCE of 13.96%, it has a very expensive valuation with a 2.90 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 42.31%, its profits have fallen by -25.2%
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kurita Water Industries Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Kurita Water Industries Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Kurita Water Industries Ltd.

42.31%

694.56

42.94%

Japan Nikkei 225

52.12%

1.78

29.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.15%

EBIT Growth (5y)

13.06%

EBIT to Interest (avg)

29.84

Debt to EBITDA (avg)

0.23

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.95

Tax Ratio

30.89%

Dividend Payout Ratio

77.06%

Pledged Shares

Institutional Holding

0.46%

ROCE (avg)

13.13%

ROE (avg)

7.45%

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

3.05

EV to EBIT

20.76

EV to EBITDA

10.19

EV to Capital Employed

2.90

EV to Sales

2.66

PEG Ratio

Dividend Yield

ROCE (Latest)

13.96%

ROE (Latest)

6.84%

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

No Trend

OBV

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

20What is working for the Company

ROCE(HY)

Highest at 11.73%

DIVIDEND PER SHARE(HY)

Highest at JPY 2.96

RAW MATERIAL COST(Y)

Fallen by -10.21% (YoY

CASH AND EQV(HY)

Highest at JPY 128,018 MM

PRE-TAX PROFIT(Q)

Highest at JPY 18,113 MM

NET PROFIT(Q)

Highest at JPY 12,322 MM

-15What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.16 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.96 times

INTEREST(Q)

Highest at JPY 665 MM

EPS(Q)

Lowest at JPY -104.61

Here's what is working for Kurita Water Industries Ltd.

Dividend per share

Highest at JPY 2.96 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Pre-Tax Profit

Highest at JPY 18,113 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 18,113 MM has Grown at 95.58%

over average net sales of the previous four periods of JPY 9,261 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 12,322 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 12,322 MM has Grown at 109.97%

over average net sales of the previous four periods of JPY 5,868.5 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 128,018 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -10.21% (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 Kurita Water Industries Ltd.

Interest

At JPY 665 MM has Grown at 58.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 12.16 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 665 MM

in the last five periods and Increased by 58.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -104.61

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 2.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio