Raito Kogyo Co., Ltd. (1926) 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

Kumagai Gumi Co., Ltd.

Raito Kogyo Co., Ltd.

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CHUDENKO CORP.

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MIRAIT One Corp.

Yokogawa Bridge Holdings Corp.

Okumura Corp.

Hitachi Zosen Corp.

Why is Raito Kogyo Co., Ltd. ?

High Management Efficiency with a high ROE of 10.62%

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 4.96% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 63 MM has Grown at 16.67%
CASH AND EQV(HY) Lowest at JPY 47,954 MM

With ROE of 13.89%, it has a very attractive valuation with a 2.01 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 39.80%, its profits have risen by 38.7% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 39.80% 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 Raito Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Raito Kogyo Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Raito Kogyo Co., Ltd.

39.8%

3.81

25.02%

Japan Nikkei 225

85.83%

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)

4.96%

EBIT Growth (5y)

7.77%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.38

Tax Ratio

29.21%

Dividend Payout Ratio

46.66%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

23.33%

ROE (avg)

10.62%

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

2.01

EV to EBIT

10.20

EV to EBITDA

8.54

EV to Capital Employed

2.24

EV to Sales

1.19

PEG Ratio

0.30

Dividend Yield

ROCE (Latest)

21.95%

ROE (Latest)

13.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

7What is working for the Company

ROCE(HY)

Highest at 14.04%

RAW MATERIAL COST(Y)

Fallen by -17.79% (YoY

NET PROFIT(9M)

Higher at JPY 10,969.98 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 47.43 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.13 times

DIVIDEND PER SHARE(HY)

Highest at JPY 3.13

-7What is not working for the Company

INTEREST(HY)

At JPY 63 MM has Grown at 16.67%

CASH AND EQV(HY)

Lowest at JPY 47,954 MM

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

Inventory Turnover Ratio

Highest at 47.43 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.13 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 3.13

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

Higher at JPY 10,969.98 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -17.79% (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

Depreciation

Highest at JPY 830 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 Raito Kogyo Co., Ltd.

Interest

At JPY 63 MM has Grown at 16.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 47,954 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents