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Rengo Co., Ltd.

  • Market Cap: Mid Cap
  • Industry: Paper, Forest & Jute Products
  • ISIN: JP3981400009
  • TKS: 3941
JPY
1,549.00
12.5 (0.81%)

Sep 25

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Tomoegawa Corp.
Nippon Kodoshi Corp.
Mitsubishi Paper Mills Ltd.
Chuetsu Pulp & Paper Co., Ltd.
Rengo Co., Ltd.
Tokushu Tokai Paper Co., Ltd.
Nippon Filcon Co., Ltd.
Nichiban Co., Ltd.
Daio Paper Corp.
Nippon Paper Industries Co., Ltd.
Hokuetsu Corp.

Why is Rengo Co., Ltd. ?

1
The company is Net-Debt Free
  • The company is Net-Debt Free
2
High Debt company with Weak Long Term Fundamental Strength
3
With ROCE of 4.25%, it has a very attractive valuation with a 0.88 Enterprise value to Capital Employed
  • 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 60.59%, its profits have risen by 2.4% ; the PEG ratio of the company is 6.2
  • At the current price, the company has a high dividend yield of 0
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Rengo Co., Ltd. for you?

Low Risk, Medium Return

Absolute
Risk Adjusted
Volatility
Rengo Co., Ltd.
62.52%
1.59
30.36%
Japan Nikkei 225
43.58%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
8.26%
EBIT Growth (5y)
-0.26%
EBIT to Interest (avg)
12.71
Debt to EBITDA (avg)
3.70
Net Debt to Equity (avg)
0.76
Sales to Capital Employed (avg)
1.07
Tax Ratio
44.83%
Dividend Payout Ratio
47.22%
Pledged Shares
0
Institutional Holding
0.17%
ROCE (avg)
4.92%
ROE (avg)
7.68%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
0.78
EV to EBIT
20.67
EV to EBITDA
7.72
EV to Capital Employed
0.88
EV to Sales
0.76
PEG Ratio
6.16
Dividend Yield
NA
ROCE (Latest)
4.25%
ROE (Latest)
5.20%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company
RAW MATERIAL COST(Y)

Fallen by -10.49% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.6 times

NET SALES(Q)

Highest at JPY 275,750 MM

OPERATING PROFIT(Q)

Highest at JPY 33,318 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.08 %

PRE-TAX PROFIT(Q)

Highest at JPY 19,195 MM

NET PROFIT(Q)

At JPY 11,663.03 MM has Grown at 93.24%

-9What is not working for the Company
INTEREST(HY)

At JPY 3,342 MM has Grown at 33.73%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.61 times

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

Net Sales
Highest at JPY 275,750 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit
Highest at JPY 33,318 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin
Highest at 12.08 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at JPY 19,195 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit
At JPY 19,195 MM has Grown at 83.95%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit
At JPY 11,663.03 MM has Grown at 93.24%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is positive

Net Profit (JPY MM)

Debtors Turnover Ratio
Highest at 3.6 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 -10.49% (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 Rengo Co., Ltd.

Interest
At JPY 3,342 MM has Grown at 33.73%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio
Lowest at 7.61 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income
Highest at JPY 0.15 MM
in the last five periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income

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