Why is Kyokuto Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 3.32%
- The company has been able to generate a Return on Equity (avg) of 3.32% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -104.98
- Poor long term growth as Net Sales has grown by an annual rate of -4.06% and Operating profit at 2.89% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -104.98
- The company has been able to generate a Return on Equity (avg) of 3.32% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -4.06% and Operating profit at 2.89% over the last 5 years
4
Negative results in May 25
- DEBTORS TURNOVER RATIO(HY) Lowest at 20.67%
- INTEREST(Q) Highest at JPY 3.1 MM
5
With ROE of 9.24%, it has a very attractive valuation with a 1.22 Price to Book Value
- Over the past year, while the stock has generated a return of 0.78%, its profits have risen by 26.9% ; the PEG ratio of the company is 0.5
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 Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Kyokuto Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kyokuto Co., Ltd.
0.78%
0.10
21.55%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.06%
EBIT Growth (5y)
2.89%
EBIT to Interest (avg)
-79.70
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
1.60
Tax Ratio
18.44%
Dividend Payout Ratio
69.68%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.21%
ROE (avg)
3.32%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.22
EV to EBIT
35.17
EV to EBITDA
15.69
EV to Capital Employed
1.17
EV to Sales
0.61
PEG Ratio
0.49
Dividend Yield
NA
ROCE (Latest)
3.32%
ROE (Latest)
9.24%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
4What is working for the Company
NET PROFIT(HY)
Higher at JPY 246.56 MM
RAW MATERIAL COST(Y)
Fallen by 0.63% (YoY
-10What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 20.67%
INTEREST(Q)
Highest at JPY 3.1 MM
Here's what is working for Kyokuto Co., Ltd.
Net Profit
Higher at JPY 246.56 MM
than preceding 12 month period ended May 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by 0.63% (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 Kyokuto Co., Ltd.
Interest
Highest at JPY 3.1 MM
in the last five periods and Increased by 7.57% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 20.67%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at JPY 0.07 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






