POVAL Kogyo Co., Ltd. (4247) 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

Kikusui Chemical Industries Co., Ltd.

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Takagi Seiko Corp.

Tokyo Printing Ink Manufacturing Co., Ltd.

Isamu Paint Co., Ltd.

Japan Insulation Co., Ltd.

POVAL Kogyo Co., Ltd.

Mipox Corp.

Shinto Paint Co., Ltd.

Wavelock Holdings Co., Ltd.

Okamoto Glass Co., Ltd.

Why is POVAL Kogyo 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

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 -1.49% of over the last 5 years

Flat results in Dec 25

INTEREST(HY) At JPY 1.1 MM has Grown at 1,051.04%
INTEREST COVERAGE RATIO(Q) Lowest at 18,569.59

With ROE of 5.07%, it has a very attractive valuation with a 0.64 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 7.60%, its profits have risen by 120% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 7.60% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to POVAL Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is POVAL Kogyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

POVAL Kogyo Co., Ltd.

-100.0%

0.17

29.22%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.04%

EBIT Growth (5y)

-1.49%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

0.60

Tax Ratio

51.20%

Dividend Payout Ratio

124.36%

Pledged Shares

Institutional Holding

ROCE (avg)

7.38%

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

0.64

EV to EBIT

8.01

EV to EBITDA

5.84

EV to Capital Employed

0.59

EV to Sales

0.84

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

7.34%

ROE (Latest)

5.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

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

15What is working for the Company

ROCE(HY)

Highest at 6.35%

RAW MATERIAL COST(Y)

Fallen by -21.39% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -15.61 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.55 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.55

PRE-TAX PROFIT(Q)

At JPY 109.5 MM has Grown at 115.9%

NET PROFIT(Q)

Highest at JPY 119.17 MM

EPS(Q)

Highest at JPY 45.23

-10What is not working for the Company

INTEREST(HY)

At JPY 1.19 MM has Grown at 145.68%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.87 times

NET SALES(Q)

Lowest at JPY 857.93 MM

Here's what is working for POVAL Kogyo Co., Ltd.

Pre-Tax Profit

At JPY 109.5 MM has Grown at 115.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 119.17 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 119.17 MM has Grown at 132.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 45.23

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at -15.61 %

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 4.55 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 4.55

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -21.39% (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 POVAL Kogyo Co., Ltd.

Interest

At JPY 1.19 MM has Grown at 145.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 857.93 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 1.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio