KYOSHA Co., Ltd. (6837) 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

Ishii Hyoki Co., Ltd.

Enomoto Co., Ltd.

Sigma Koki Co., Ltd.

Shirai Electronics Industrial Co., Ltd.

Nippo Ltd.

KEL CORP.

KYOSHA Co., Ltd.

GLOSEL Co., Ltd.

UMC Electronics Co., Ltd.

INTER ACTION Corp.

JTEC Corp. (Osaka)

Why is KYOSHA Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.88%

The company has been able to generate a Return on Capital Employed (avg) of 5.88% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 6.64% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.41% signifying low profitability per unit of shareholders funds
RAW MATERIAL COST(Y) Grown by 6.52% (YoY)
NET PROFIT(Q) At JPY 69 MM has Fallen at -38.22%

With ROCE of 9.94%, it has a very attractive valuation with a 0.65 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 -24.74%, its profits have risen by 3.4% ; the PEG ratio of the company is 2.5

Below par performance in long term as well as near term

Along with generating -24.74% 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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to KYOSHA Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is KYOSHA Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

KYOSHA Co., Ltd.

-24.74%

-0.90

31.48%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.64%

EBIT Growth (5y)

74.06%

EBIT to Interest (avg)

3.83

Debt to EBITDA (avg)

2.71

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

1.43

Tax Ratio

33.13%

Dividend Payout Ratio

25.98%

Pledged Shares

Institutional Holding

ROCE (avg)

5.88%

ROE (avg)

4.41%

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

0.55

EV to EBIT

6.59

EV to EBITDA

3.52

EV to Capital Employed

0.65

EV to Sales

0.32

PEG Ratio

2.52

Dividend Yield

ROCE (Latest)

9.94%

ROE (Latest)

6.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

DEBTORS TURNOVER RATIO(HY)

Highest at 6.46 times

CASH AND EQV(HY)

Highest at JPY 10,755 MM

DEBT-EQUITY RATIO (HY)

Lowest at 27.89 %

-10What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 6.52% (YoY

NET PROFIT(Q)

At JPY 69 MM has Fallen at -38.22%

Here's what is working for KYOSHA Co., Ltd.

Debtors Turnover Ratio

Highest at 6.46 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Cash and Eqv

Highest at JPY 10,755 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 27.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for KYOSHA Co., Ltd.

Net Profit

At JPY 69 MM has Fallen at -38.22%

over average net sales of the previous four periods of JPY 111.68 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 6.52% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales