Taoka Chemical Co., Ltd. (4113) 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

Soken Chemical & Engineering Co., Ltd.

Yushiro Chemical Industry Co., Ltd.

Daiichi Kigenso Kagaku Kogyo Co., Ltd.

Taoka Chemical Co., Ltd.

Tigers Polymer Corp.

Taki Chemical Co., Ltd.

Nippon Chemical Industrial Co., Ltd.

Toho Chemical Industry Co., Ltd.

Hodogaya Chemical Co., Ltd.

Seiko PMC Corp.

Koei Chemical Co., Ltd.

Why is Taoka Chemical Co., Ltd. ?

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 -6.84% of over the last 5 years

Flat results in Dec 25

RAW MATERIAL COST(Y) Grown by 12.21% (YoY)
PRE-TAX PROFIT(Q) Lowest at JPY 363 MM
NET PROFIT(Q) Lowest at JPY 269 MM

With ROCE of 10.03%, it has a very attractive valuation with a 0.97 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 -22.68%, its profits have risen by 78.9% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -22.68% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Taoka Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Taoka Chemical Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Taoka Chemical Co., Ltd.

-22.68%

0.53

46.11%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.12%

EBIT Growth (5y)

-6.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.50

Tax Ratio

24.71%

Dividend Payout Ratio

30.05%

Pledged Shares

Institutional Holding

ROCE (avg)

13.83%

ROE (avg)

8.93%

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

0.97

EV to EBIT

9.64

EV to EBITDA

6.93

EV to Capital Employed

0.97

EV to Sales

0.61

PEG Ratio

0.15

Dividend Yield

0.04%

ROCE (Latest)

10.03%

ROE (Latest)

7.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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 9.21%

DEBT-EQUITY RATIO (HY)

Lowest at -1.29 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.58 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.77 times

-7What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 12.21% (YoY

PRE-TAX PROFIT(Q)

Lowest at JPY 363 MM

NET PROFIT(Q)

Lowest at JPY 269 MM

EPS(Q)

Lowest at JPY 18.77

Here's what is working for Taoka Chemical Co., Ltd.

Debt-Equity Ratio

Lowest at -1.29 % and Grown

In each half year 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 3.58 times and Grown

In each half year 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 5.77 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Taoka Chemical Co., Ltd.

Pre-Tax Profit

At JPY 363 MM has Fallen at -40.44%

over average net sales of the previous four periods of JPY 609.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 363 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 269 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 269 MM has Fallen at -40.79%

over average net sales of the previous four periods of JPY 454.29 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 18.77

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 12.21% (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