Titan Kogyo, Ltd. (4098) 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

Daishin Chemical Co., Ltd.

Hatsuho Shouji Co., Ltd.

Green Earth Institute Co., Ltd.

Yasuhara Chemical Co., Ltd.

Somar Corp.

Lonseal Corp.

Yuki Gosei Kogyo Co., Ltd.

New Japan Chemical Co., Ltd.

REFINVERSE Group, Inc.

Titan Kogyo, Ltd.

Nankai Chemical Co., Ltd.

Why is Titan Kogyo, Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -2.31% and Operating profit at -21.18% over the last 5 years
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 3.07% signifying low profitability per unit of shareholders funds
PRE-TAX PROFIT(Q) At JPY 92 MM has Fallen at -60.34%
NET SALES(HY) At JPY 4,194 MM has Grown at -9.18%
NET PROFIT(Q) At JPY 63 MM has Fallen at -51.16%

With ROCE of 1.50%, it has a attractive valuation with a 0.73 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 -6.12%, its profits have risen by 127.2% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.12% 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 Titan Kogyo, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Titan Kogyo, Ltd.

-7.0%

-1.00

22.67%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.31%

EBIT Growth (5y)

-21.18%

EBIT to Interest (avg)

-0.62

Debt to EBITDA (avg)

25.80

Net Debt to Equity (avg)

1.05

Sales to Capital Employed (avg)

0.65

Tax Ratio

36.93%

Dividend Payout Ratio

14.84%

Pledged Shares

Institutional Holding

ROCE (avg)

1.44%

ROE (avg)

3.07%

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

0.45

EV to EBIT

48.89

EV to EBITDA

8.60

EV to Capital Employed

0.73

EV to Sales

0.98

PEG Ratio

0.08

Dividend Yield

0.07%

ROCE (Latest)

1.50%

ROE (Latest)

4.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

12What is working for the Company

NET PROFIT(HY)

Higher at JPY 60.5 MM

ROCE(HY)

Highest at 2.66%

RAW MATERIAL COST(Y)

Fallen by -76.43% (YoY

NET SALES(Q)

Highest at JPY 2,121 MM

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 92 MM has Fallen at -60.34%

NET SALES(HY)

At JPY 4,194 MM has Grown at -9.18%

NET PROFIT(Q)

At JPY 63 MM has Fallen at -51.16%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.81%

INTEREST(Q)

Highest at JPY 17 MM

Here's what is working for Titan Kogyo, Ltd.

Net Sales

Highest at JPY 2,121 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -76.43% (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 Titan Kogyo, Ltd.

Pre-Tax Profit

At JPY 92 MM has Fallen at -60.34%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 63 MM has Fallen at -51.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 17 MM

in the last five periods and Increased by 6.25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 3.81%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio