Tokushu Tokai Paper Co., Ltd. (3708) 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

Nippon Kodoshi Corp.

Tokushu Tokai Paper Co., Ltd.

Nippon Filcon Co., Ltd.

Rengo Co., Ltd.

Daio Paper Corp.

Mitsubishi Paper Mills Ltd.

Tomoegawa Corp.

Nichiban Co., Ltd.

Hokuetsu Corp.

Nippon Paper Industries Co., Ltd.

Chuetsu Pulp & Paper Co., Ltd.

Why is Tokushu Tokai Paper Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.46%

The company has been able to generate a Return on Capital Employed (avg) of 3.46% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.30% and Operating profit at 6.48% over the last 5 years

Negative results in Jun 25

NET PROFIT(HY) At JPY 1,403.82 MM has Grown at -38.31%
CASH AND EQV(HY) Lowest at JPY 20,283 MM
DEBT-EQUITY RATIO (HY) Highest at 25.04 %

With ROCE of 4.07%, it has a very attractive valuation with a 0.68 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 25.45%, its profits have fallen by -19.2%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokushu Tokai Paper Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Tokushu Tokai Paper Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokushu Tokai Paper Co., Ltd.

25.45%

-0.83

70.58%

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)

3.30%

EBIT Growth (5y)

6.48%

EBIT to Interest (avg)

18.69

Debt to EBITDA (avg)

1.48

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.85

Tax Ratio

28.33%

Dividend Payout Ratio

39.02%

Pledged Shares

Institutional Holding

ROCE (avg)

3.46%

ROE (avg)

7.61%

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

0.61

EV to EBIT

16.77

EV to EBITDA

6.22

EV to Capital Employed

0.68

EV to Sales

0.69

PEG Ratio

Dividend Yield

ROCE (Latest)

4.07%

ROE (Latest)

5.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.93% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.42%

OPERATING PROFIT(Q)

Highest at JPY 3,024 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.45 %

-13What is not working for the Company

NET PROFIT(HY)

At JPY 1,403.82 MM has Grown at -38.31%

CASH AND EQV(HY)

Lowest at JPY 20,283 MM

DEBT-EQUITY RATIO (HY)

Highest at 25.04 %

INTEREST(Q)

Highest at JPY 67 MM

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

Operating Profit

Highest at JPY 3,024 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 12.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debtors Turnover Ratio

Highest at 3.42%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.93% (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 Tokushu Tokai Paper Co., Ltd.

Net Profit

At JPY 1,403.82 MM has Grown at -38.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Interest

Highest at JPY 67 MM

in the last five periods and Increased by 6.35% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 20,283 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 25.04 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio