Tokai Carbon Co., Ltd. (5301) 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

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Tokai Carbon Co., Ltd.

Why is Tokai Carbon Co., Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -10.39% of over the last 5 years

Negative results in Dec 25

NET SALES(9M) At JPY 242,614 MM has Grown at -9.46%
INTEREST COVERAGE RATIO(Q) Lowest at 1,266.4
DEBTORS TURNOVER RATIO(HY) Lowest at 4.86 times

With ROCE of 5.94%, it has a risky valuation with a 0.89 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 -4.84%, its profits have fallen by -19.5%
At the current price, the company has a high dividend yield of 0.1

Below par performance in long term as well as near term

Along with generating -4.84% 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 Tokai Carbon Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Tokai Carbon Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokai Carbon Co., Ltd.

-4.84%

-0.07

31.95%

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)

7.20%

EBIT Growth (5y)

-10.39%

EBIT to Interest (avg)

20.41

Debt to EBITDA (avg)

1.84

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

0.71

Tax Ratio

12.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.86%

ROE (avg)

7.05%

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

0.84

EV to EBIT

14.93

EV to EBITDA

5.55

EV to Capital Employed

0.89

EV to Sales

0.99

PEG Ratio

Dividend Yield

0.10%

ROCE (Latest)

5.94%

ROE (Latest)

6.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

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

RAW MATERIAL COST(Y)

Fallen by -15.06% (YoY

NET PROFIT(9M)

Higher at JPY 16,722.81 MM

-18What is not working for the Company

NET SALES(9M)

At JPY 242,614 MM has Grown at -9.46%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,266.4

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.86 times

INTEREST(Q)

Highest at JPY 1,140 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 5,298 MM

NET PROFIT(Q)

Fallen at -42.49%

Here's what is working for Tokai Carbon Co., Ltd.

Raw Material Cost

Fallen by -15.06% (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

At JPY 9,888 MM has Grown at 26.03%

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 Tokai Carbon Co., Ltd.

Interest

At JPY 1,140 MM has Grown at 108.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,266.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At JPY 242,614 MM has Grown at -9.46%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 1,140 MM

in the last five periods and Increased by 108.03% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 5,298 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -42.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 4.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio