Kyowa Leather Cloth Co., Ltd. (3553) 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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Ultrafabrics Holdings Co., Ltd.

Akebono Brake Industry Co., Ltd.

Sekisui Kasei Co., Ltd.

Ohashi Technica Inc.

Mikuni Corp.

Kyowa Leather Cloth Co., Ltd.

Okada Aiyon Corp.

Chuo Spring Co., Ltd.

Taiho Kogyo Co., Ltd.

Why is Kyowa Leather Cloth Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.05%

The company has been able to generate a Return on Equity (avg) of 4.05% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a -2.27% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.05% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.51% and Operating profit at -2.27% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

INTEREST(HY) At JPY 13 MM has Grown at 116.67%
INTEREST COVERAGE RATIO(Q) Lowest at 12,016.67
PRE-TAX PROFIT(Q) At JPY 167 MM has Fallen at -46.98%

With ROE of 1.47%, it has a very attractive valuation with a 0.59 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 12.55%, its profits have fallen by -66.2%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kyowa Leather Cloth Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Kyowa Leather Cloth Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kyowa Leather Cloth Co., Ltd.

12.55%

0.62

27.30%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.51%

EBIT Growth (5y)

-2.27%

EBIT to Interest (avg)

84.26

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.49

Tax Ratio

38.05%

Dividend Payout Ratio

189.18%

Pledged Shares

Institutional Holding

ROCE (avg)

6.41%

ROE (avg)

4.05%

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

0.59

EV to EBIT

10.85

EV to EBITDA

3.21

EV to Capital Employed

0.45

EV to Sales

0.21

PEG Ratio

Dividend Yield

ROCE (Latest)

4.14%

ROE (Latest)

1.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

8What is working for the Company

NET PROFIT(HY)

Higher at JPY 467.52 MM

RAW MATERIAL COST(Y)

Fallen by -1.82% (YoY

-14What is not working for the Company

INTEREST(HY)

At JPY 13 MM has Grown at 116.67%

INTEREST COVERAGE RATIO(Q)

Lowest at 12,016.67

PRE-TAX PROFIT(Q)

At JPY 167 MM has Fallen at -46.98%

CASH AND EQV(HY)

Lowest at JPY 14,372 MM

DEBT-EQUITY RATIO (HY)

Highest at -13.33 %

Here's what is working for Kyowa Leather Cloth Co., Ltd.

Net Profit

At JPY 467.52 MM has Grown at 558.47%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Higher at JPY 467.52 MM

than preceding 12 month period ended Jun 2026

MOJO 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 -1.82% (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 Kyowa Leather Cloth Co., Ltd.

Interest

At JPY 13 MM has Grown at 116.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 12,016.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 167 MM has Fallen at -46.98%

over average net sales of the previous four periods of JPY 315 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Cash and Eqv

Lowest at JPY 14,372 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -13.33 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at JPY 0.88 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income