Kyowakogyosyo Co., Ltd. (5971) 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

Shinwa Co., Ltd. (Gifu)

Iwabuchi Corp.

Kyowakogyosyo Co., Ltd.

Chuo Malleable Iron Co., Ltd.

NISSO PRONITY Co., Ltd.

JMC Corp.

Ishii Iron Works Co., Ltd.

Endo Manufacturing Co., Ltd.

Kuroda Precision Industries Ltd.

KOMAIHALTEC Inc.

Chita Kogyo Co., Ltd.

Why is Kyowakogyosyo Co., Ltd. ?

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

Poor long term growth as Operating profit has grown by an annual rate 6.21% of over the last 5 years

Flat results in Oct 25

NET SALES(Q) Lowest at JPY 2,520.53 MM
OPERATING PROFIT(Q) Lowest at JPY 267.21 MM
OPERATING PROFIT MARGIN(Q) Lowest at 10.6 %

With ROE of 3.97%, it has a expensive valuation with a 0.48 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 38.75%, its profits have fallen by -65.3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kyowakogyosyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Kyowakogyosyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kyowakogyosyo Co., Ltd.

37.98%

0.96

29.93%

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)

3.20%

EBIT Growth (5y)

6.21%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

0.72

Tax Ratio

23.98%

Dividend Payout Ratio

14.93%

Pledged Shares

Institutional Holding

ROCE (avg)

15.09%

ROE (avg)

6.57%

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

0.48

EV to EBIT

-1.01

EV to EBITDA

-0.68

EV to Capital Employed

-0.11

EV to Sales

-0.08

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

3.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly 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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.81% (YoY

NET PROFIT(9M)

Higher at JPY 649.44 MM

CASH AND EQV(HY)

Highest at JPY 19,170.54 MM

DEBT-EQUITY RATIO (HY)

Lowest at -60.02 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.08 times

-9What is not working for the Company

NET SALES(Q)

Lowest at JPY 2,520.53 MM

OPERATING PROFIT(Q)

Lowest at JPY 267.21 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.6 %

PRE-TAX PROFIT(Q)

Lowest at JPY 197.83 MM

NET PROFIT(Q)

Lowest at JPY 136.4 MM

EPS(Q)

Lowest at JPY 104.8

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

Cash and Eqv

Highest at JPY 19,170.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -60.02 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.81% (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 Kyowakogyosyo Co., Ltd.

Net Sales

Lowest at JPY 2,520.53 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 2,520.53 MM has Fallen at -6.05%

over average net sales of the previous four periods of JPY 2,682.88 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 267.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 10.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 197.83 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 197.83 MM has Fallen at -28.42%

over average net sales of the previous four periods of JPY 276.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 136.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 136.4 MM has Fallen at -34.48%

over average net sales of the previous four periods of JPY 208.17 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 104.8

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)