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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Atomix Co., Ltd.

Tokyo Printing Ink Manufacturing Co., Ltd.

POVAL Kogyo Co., Ltd.

Kikusui Chemical Industries Co., Ltd.

Japan Insulation Co., Ltd.

Isamu Paint Co., Ltd.

Takagi Seiko Corp.

Mipox Corp.

Wavelock Holdings Co., Ltd.

Shinto Paint 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 -11.89% of over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At JPY 0.85 MM has Grown at 937.8%
ROCE(HY) Lowest at 2.22%

With ROE of 2.72%, it has a very attractive valuation with a 0.54 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 6.76%, its profits have fallen by -17.6%

Underperformed the market in the last 1 year

The stock has generated a return of 6.76% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

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.

6.76%

0.32

20.67%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.51%

EBIT Growth (5y)

-11.89%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

0.61

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

0.54

EV to EBIT

9.48

EV to EBITDA

5.91

EV to Capital Employed

0.46

EV to Sales

0.67

PEG Ratio

Dividend Yield

ROCE (Latest)

4.87%

ROE (Latest)

2.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bearish

OBV

Mildly Bullish

No Trend

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

18What is working for the Company

NET PROFIT(Q)

At JPY 47.72 MM has Grown at 1,774.23%

RAW MATERIAL COST(Y)

Fallen by -12.95% (YoY

NET SALES(Q)

Highest at JPY 889 MM

OPERATING PROFIT(Q)

Highest at JPY 129.39 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.55 %

PRE-TAX PROFIT(Q)

Highest at JPY 139.64 MM

-10What is not working for the Company

INTEREST(HY)

At JPY 0.85 MM has Grown at 937.8%

ROCE(HY)

Lowest at 2.22%

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

Pre-Tax Profit

At JPY 139.64 MM has Grown at 1,197.56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 47.72 MM has Grown at 1,774.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 889 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 129.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 14.55 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 139.64 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -12.95% (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 0.85 MM has Grown at 937.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)