ScoreWhy is Riso Kagaku Corp. ?
1
Poor Management Efficiency with a low ROE of 6.05%
- The company has been able to generate a Return on Equity (avg) of 6.05% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 2.83% CAGR growth in Net Sales over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 6.05% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 2.83% over the last 5 years
4
Negative results in Jun 26
- INTEREST COVERAGE RATIO(Q) Lowest at 7,562.86
- DEBT-EQUITY RATIO (HY) Highest at -11.66 %
- INTEREST(Q) Highest at JPY 35 MM
5
With ROE of 7.05%, it has a very attractive valuation with a 1.06 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 -8.59%, its profits have fallen by -4.4%
- At the current price, the company has a high dividend yield of 0
6
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.59% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Riso Kagaku Corp. should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Riso Kagaku Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Riso Kagaku Corp.
-100.0%
-1.34
23.30%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.83%
EBIT Growth (5y)
49.61%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.14
Sales to Capital Employed (avg)
1.11
Tax Ratio
31.14%
Dividend Payout Ratio
72.78%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.81%
ROE (avg)
6.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.06
EV to EBIT
10.61
EV to EBITDA
6.37
EV to Capital Employed
1.07
EV to Sales
0.76
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
10.07%
ROE (Latest)
7.05%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.04% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.68 times
OPERATING PROFIT(Q)
Highest at JPY 2,647 MM
OPERATING PROFIT MARGIN(Q)
Highest at 12.85 %
PRE-TAX PROFIT(Q)
Highest at JPY 2,250 MM
-14What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 7,562.86
DEBT-EQUITY RATIO
(HY)
Highest at -11.66 %
INTEREST(Q)
Highest at JPY 35 MM
Here's what is working for Riso Kagaku Corp.
Operating Profit
Highest at JPY 2,647 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 12.85 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 2,250 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Inventory Turnover Ratio
Highest at 2.68 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 1.04% (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 1,059 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Riso Kagaku Corp.
Interest
At JPY 35 MM has Grown at 34.62%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 7,562.86
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 35 MM
in the last five periods and Increased by 34.62% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -11.66 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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