Kyowa Corporation Co. Ltd. (6570) 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

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Souken Ace Co., Ltd.

Why is Kyowa Corporation Co. Ltd. ?

High Management Efficiency with a high ROCE of 13.59%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.48 times

Healthy long term growth as Operating profit has grown by an annual rate 36.12%

The company declared positive results in Mar'25 after negative results in Dec'24

ROCE(HY) Highest at 21.98%
CASH AND EQV(HY) Highest at JPY 10,556.23 MM
DEBT-EQUITY RATIO (HY) Lowest at 26.38 %

With ROCE of 21.29%, it has a very attractive valuation with a 1.17 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 29.67%, its profits have risen by 53.9% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kyowa Corporation Co. Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Kyowa Corporation Co. Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Kyowa Corporation Co. Ltd.

29.67%

1.48

31.04%

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)

4.21%

EBIT Growth (5y)

36.12%

EBIT to Interest (avg)

24.05

Debt to EBITDA (avg)

0.48

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

1.50

Tax Ratio

21.70%

Dividend Payout Ratio

12.99%

Pledged Shares

Institutional Holding

ROCE (avg)

13.59%

ROE (avg)

11.34%

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

1.22

EV to EBIT

5.52

EV to EBITDA

2.17

EV to Capital Employed

1.17

EV to Sales

0.43

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

21.29%

ROE (Latest)

21.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

10What is working for the Company

ROCE(HY)

Highest at 21.98%

CASH AND EQV(HY)

Highest at JPY 10,556.23 MM

DEBT-EQUITY RATIO (HY)

Lowest at 26.38 %

NET SALES(Q)

At JPY 5,000.89 MM has Grown at 25.83%

-12What is not working for the Company

INTEREST(HY)

At JPY 26.46 MM has Grown at 53.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 5,977.25

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.61 times

OPERATING PROFIT MARGIN(Q)

Lowest at 15.91 %

Here's what is working for Kyowa Corporation Co. Ltd.

Net Sales

At JPY 5,000.89 MM has Grown at 25.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 10,556.23 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 26.38 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Depreciation

Highest at JPY 547.27 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Kyowa Corporation Co. Ltd.

Interest

At JPY 26.46 MM has Grown at 53.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 5,977.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 15.91 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 16.61 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio