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

Chuo Spring Co., Ltd.

Mikuni Corp.

Taiho Kogyo Co., Ltd.

Ultrafabrics Holdings Co., Ltd.

Ohashi Technica Inc.

Yorozu Corp.

Akebono Brake Industry Co., Ltd.

SUNCALL CORP.

Kyowa Leather Cloth Co., Ltd.

Okada Aiyon Corp.

Sekisui Kasei Co., Ltd.

Why is Kyowa Leather Cloth Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 5.61% and Operating profit at -1.89% over the last 5 years

Negative results in Dec 25

NET PROFIT(HY) At JPY 307.49 MM has Grown at -60.88%
ROCE(HY) Lowest at 0.82%
INTEREST(Q) At JPY 4 MM has Grown at 33.33%

With ROE of 3.61%, it has a very attractive valuation with a 0.53 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 33.02%, its profits have fallen by -38.3%
At the current price, the company has a high dividend yield of 0.1

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.

32.65%

0.80

30.73%

Japan Nikkei 225

36.73%

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)

5.61%

EBIT Growth (5y)

-1.89%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.46

Tax Ratio

27.28%

Dividend Payout Ratio

69.45%

Pledged Shares

Institutional Holding

ROCE (avg)

7.17%

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

0.53

EV to EBIT

4.48

EV to EBITDA

1.90

EV to Capital Employed

0.33

EV to Sales

0.15

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

7.32%

ROE (Latest)

3.61%

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

Bullish

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

6What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 9.95 times

PRE-TAX PROFIT(Q)

At JPY 616 MM has Grown at 117.86%

NET PROFIT(Q)

At JPY 377.34 MM has Grown at 148.19%

-19What is not working for the Company

NET PROFIT(HY)

At JPY 307.49 MM has Grown at -60.88%

ROCE(HY)

Lowest at 0.82%

INTEREST(Q)

At JPY 4 MM has Grown at 33.33%

RAW MATERIAL COST(Y)

Grown by 11.59% (YoY

CASH AND EQV(HY)

Lowest at JPY 20,353 MM

DEBT-EQUITY RATIO (HY)

Highest at -24.83 %

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

Pre-Tax Profit

At JPY 616 MM has Grown at 117.86%

over average net sales of the previous four periods of JPY 282.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 377.34 MM has Grown at 148.19%

over average net sales of the previous four periods of JPY 152.04 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 9.95 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 712 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 Leather Cloth Co., Ltd.

Interest

At JPY 4 MM has Grown at 33.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 20,353 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -24.83 %

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

Raw Material Cost

Grown by 11.59% (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