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.

Ohashi Technica Inc.

Taiho Kogyo Co., Ltd.

Ultrafabrics Holdings Co., Ltd.

SUNCALL CORP.

Kyowa Leather Cloth Co., Ltd.

Okada Aiyon Corp.

Akebono Brake Industry Co., Ltd.

Yorozu 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 Jun 25

NET SALES(Q) At JPY 12,376 MM has Fallen at -12.22%
PRE-TAX PROFIT(Q) At JPY 75 MM has Fallen at -83.07%
RAW MATERIAL COST(Y) Grown by 15.65% (YoY)

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 63.17%, its profits have fallen by -38.3%
At the current price, the company has a high dividend yield of 0.1

Market Beating performance in long term as well as near term

Along with generating 63.17% returns in the last 1 year, the stock has outperformed 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 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, Medium Return

Absolute

Risk Adjusted

Volatility

Kyowa Leather Cloth Co., Ltd.

62.25%

1.82

25.96%

Japan Nikkei 225

48.58%

1.69

26.89%

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

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bearish

Bullish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 9.53%

-22What is not working for the Company

NET SALES(Q)

At JPY 12,376 MM has Fallen at -12.22%

PRE-TAX PROFIT(Q)

At JPY 75 MM has Fallen at -83.07%

RAW MATERIAL COST(Y)

Grown by 15.65% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -28.47 %

OPERATING PROFIT(Q)

Lowest at JPY 612 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.95 %

NET PROFIT(Q)

Lowest at JPY 33 MM

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

Inventory Turnover Ratio

Highest at 9.53% 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

Here's what is not working for Kyowa Leather Cloth Co., Ltd.

Net Sales

At JPY 12,376 MM has Fallen at -12.22%

over average net sales of the previous four periods of JPY 14,099.25 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 75 MM has Fallen at -83.07%

over average net sales of the previous four periods of JPY 443 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 33 MM has Fallen at -88.9%

over average net sales of the previous four periods of JPY 297.23 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 612 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -28.47 %

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 15.65% (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