Tanaka Chemical Corp. (4080) 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

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TENMA Corp.

Toyo Gosei Co., Ltd.

Tanaka Chemical Corp.

Kanto Denka Kogyo Co., Ltd.

Why is Tanaka Chemical Corp. ?

Poor Management Efficiency with a low ROCE of 4.97%

The company has been able to generate a Return on Capital Employed (avg) of 4.97% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.74% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At JPY -1,919 MM has Grown at -194.95%
INTEREST(HY) At JPY 56 MM has Grown at 43.59%
NET SALES(HY) At JPY 18,417 MM has Grown at -14.38%

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -16.47%, its profits have fallen by -126%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.47% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

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 Specialty Chemicals)

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

Is Tanaka Chemical Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tanaka Chemical Corp.

-16.47%

-1.80

32.80%

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)

12.70%

EBIT Growth (5y)

10.98%

EBIT to Interest (avg)

12.10

Debt to EBITDA (avg)

3.72

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.68

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.97%

ROE (avg)

5.74%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.79

EV to EBIT

-47.19

EV to EBITDA

12.03

EV to Capital Employed

0.85

EV to Sales

0.56

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.80%

ROE (Latest)

-3.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 4.2 %

INVENTORY TURNOVER RATIO(HY)

Highest at 6.19%

-29What is not working for the Company

NET PROFIT(HY)

At JPY -1,919 MM has Grown at -194.95%

INTEREST(HY)

At JPY 56 MM has Grown at 43.59%

NET SALES(HY)

At JPY 18,417 MM has Grown at -14.38%

PRE-TAX PROFIT(Q)

At JPY -210 MM has Fallen at -123.4%

ROCE(HY)

Lowest at -9.51%

RAW MATERIAL COST(Y)

Grown by 74.67% (YoY

Here's what is working for Tanaka Chemical Corp.

Debt-Equity Ratio

Lowest at 4.2 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 6.19%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 583 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 583 MM has Grown at 47.22%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Tanaka Chemical Corp.

Net Profit

At JPY -1,919 MM has Grown at -194.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 56 MM has Grown at 43.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -210 MM has Fallen at -123.4%

over average net sales of the previous four periods of JPY -94 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

At JPY 18,417 MM has Grown at -14.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Raw Material Cost

Grown by 74.67% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales